You love seeing and hearing people react to your creations so you started a bakery, food truck or restaurant. Your food or beverage product started as a family recipe until one day someone said the words “you should sell this” and the rest is mass production history. Whatever your role in the food and beverage industry, your passion for all things food and beverage led you to where you are today and the last thing you want to do is worry about losing your company. Food and beverage insurance policy can help protect your food and beverage business; whatever it is you do. We cover the basics of food and beverage insurance on this post giving you the information you need to make an informed decision and effectively manage the risks your food and/or beverage company faces.
Food and Beverage Insurance for Food and Beverage Manufacturers
From possible contamination to equipment failure to logistics issues, food and beverage manufacturers need to be prepared for the worst in order to continue delivering their best. Food and beverage insurance can be scaled to meet your business needs from production to distribution. The following are coverages food and beverage manufacturers will need as part of a comprehensive food and beverage insurance plan.
Commercial General Liability Insurance – If people start falling ill after consuming your food or beverage products, the potential lawsuits could mean the end of your company. Commercial general liability insurance protection covers the legal costs to defend against legal claims, whether false or not, that your products, services, business practices or advertising caused injury or property damage. CGL can also protect your company from allegations of libel and slander and slip-and-fall accidents and other injuries that take place on your property.
Product Recall Insurance – Is essential coverage for a food and beverage manufacturer. As part of a food and beverage insurance package, product recall coverage can help keep your company from going out of business. It can cover the costs to a product recall, extra wages resulting from a recall, replacement costs, public safety announcements, product testing, lost profits and, perhaps most importantly, brand rehabilitation expense.
Property Insurance – Your building, equipment, computers, office supplies, inventory, cash on hand and other assets need to be protected in case of fire, flood, windstorm or other peril. If you’re a food and beverage manufacturer who has orders that have to be filled no matter what, you’ll also need Extra Expense coverage to insure the costs of setting up a temporary workspace.
Boiler & Machinery Insurance / Equipment Breakdown Insurance – Your food and beverage manufacturing depends on equipment to help with production and to preserve raw materials, finished product and inventory. Equipment breakdown coverage protects your business from losses stemming from machinery breakdown due to covered perils and can include the costs to repair or replace equipment and the cost to replace lost product.
Cargo Insurance – Whether your food and beverage manufacturing company ships its own product or not, cargo insurance provides end-to-end coverage of the value of the cargo being shipped.
Commercial Vehicle Insurance – if you own your own delivery vehicles, they need to be insured and bundling this coverage with your food and beverage insurance could result in savings.
Cyber Liability & Privacy Insurance – cybercriminals don’t discriminate and will target any size company in any industry if it means getting access to sensitive information like customer or employee records or finding a way to hold your data or systems hostage for ransom. Cyber liability insurance cover as part of a food and beverage insurance plan can help your business recover from a data breach by covering the costs to repair and/or replace data and systems, pay ransom demands and investigate breaches, among other protections.
Food and Beverage Insurance for Restaurants and Food Service Businesses
Whether you own a:
- Bakery
- Banquet/reception hall
- Bar/pub
- Catering business
- Coffee shops/ cafe
- Deli
- Fast food establishment
- Food truck
- Micro-brewery
- Nightclub
- Restaurant
- Winery
You will also need food and beverage insurance policy. Your plan can be customized to include:
Commercial General Liability Insurance in case someone is injured at your establishment or falls ill after consuming food and or beverages served by your business. Can also provide liquor liability coverage, crucial for any business serving alcoholic beverages.
Property Insurance to protect your food and beverage service business’s building, equipment and supplies in case of fire, flooding or other peril.
Boiler & Machinery Insurance / Equipment Breakdown Insurance if a refrigeration unit or food prep equipment breaks down, this coverage as part of food and beverage insurance can cover the costs or repairs, replacements and wasted food and beverages.
Commercial Vehicle Insurance for food trucks and food delivery services.
Crime Insurance / Fidelity Insurance in case of theft or fraud by employees.
Get ALIGNED with Food and Beverage Insurance Brokered by Advocates that Work for You
Our business insurance specialists work with Canada’s top insurance companies to get your food and beverage company the best rates for comprehensive food and beverage insurance coverage. Contact an insurance company, ALIGNED advocate or get a quote online in minutes.
