Frequently Asked Questions About Food and Beverage Manufacturing Insurance
Q. What are the main insurance-related risks for food and beverage manufacturers?
A. Based on our experience on the field and the most common OSHA citations, food and beverage manufacturers are at risk for the following situations:
- Liquor liability exposure
- Product spoilage, contamination or tampering
- Falling object hazards
- Property damage
- Product liability
- Injuries from working on dangerous equipment
- Lack of quality assurance/quality control
- Machine malfunctions
- Factory fires
- Providing a lack of Personal Protective Equipment (PPE)
- Poor management of highly hazardous chemicals
- Poor hazard communication
- Business Interruption
- Cyber Liability
- Workers’ Compensation
Q. Are there particular factors to consider when evaluating Food and Beverage Manufacturing Insurance options?
A. All beverage manufacturers, regardless of what type of beverage they sell, must consider the risks of transporting goods. Property in Transit coverage can help protect your business from damaged property and potential loss of income.
It is also important to consider the risks of product contamination. This is important for all beverages, but especially important if you are selling alcohol, as the fermentation process can be unpredictable. In a perfect world, you’ll have a plan set to prevent contamination from occurring – however, accidents happen, so Horton will also work with you to provide coverage and an action plan to protect you and your business in the event of such an incident.
Last but certainly not least, alcohol manufacturers must evaluate their liability exposure. If you sell alcohol on the premises and/or offer tours, you will need to be prepared for patrons slipping/falling, and your staff should be fully trained to handle alcohol poisoning, intoxication and underage drinking. We can help you develop a plan to prepare for every scenario.
Q. What is an accident review board, and how will this help my business long-term?
A. An Accident Review Board is comprised of key company personnel who review accidents and injuries in the workplace. Horton will help you determine the best members for your board – usually, it consists of your CFO, head of facilities, risk manager, head of human resources and a Horton safety consultant.
After an incident occurs, the board meets with the injured employee and their immediate supervisor to identify the cause of the incident and develop corrective actions necessary to provide similar situations in the future. If implemented correctly, this could drastically reduce the number and the severity of work-related injuries in the future.
Q. Is cyber insurance necessary for small businesses in the food and beverage industry?
A. Yes, cyber insurance is crucial for small businesses in the food and beverage industry, as they are equally vulnerable to cyber attacks. Cyber insurance provides financial protection and support to help small businesses recover from the potentially devastating consequences of a cyber incident.
Q. What does Food and Beverage Manufacturing Insurance cost?
A. There are several factors that will impact the cost of food and beverage manufacturing insurance, including the size of your company, the amount of services you are requesting and your overall level of risk. For additional information, call Horton at (800) 383-8283.
