What Pet Food Manufacturing Insurance Covers
As a business owner, you want to do everything you can to protect the company you built.
Having the right types of insurance for your industry is the best way to protect your business from unforeseen events.
Even when you do everything right, things can go wrong. A solid pet food manufacturing insurance policy contains many components to ensure all aspects of your business are protected.
Keep reading to learn more about the types of insurance you must have if you are in the pet food manufacturing industry.
Types of Pet Food Manufacturing Insurance
A comprehensive pet business insurance plan includes a variety of commercial insurance policies. These pet care business insurance plans protect companies in the industry from property and liability risks.
They can cover the costs of repairing and replacing damaged property, expenses that arise during a temporary business closure, and even pay for the costs of defense and damages if you are sued. Let’s take a look at some of the different kinds of insurance included in a pet store insurance plan.
Commercial General Liability Insurance
Commercial general liability (CGL) insurance is necessary for any business, including a pet food company. This type of insurance protects you when you or your employees cause damage to a third party.
This includes both property damage and bodily injury. Your insurance policy covers defense costs like attorney fees and court costs as well as settlements and judgments up to the limits of your policy.
Commercial Property Insurance
Property insurance protects your building and other property should it be damaged by a covered cause like theft, fire, vandalism, and smoke. Your equipment and machinery, office space, computers, other office equipment, warehouses, and factories are all covered by this type of insurance.
Business Interruption Coverage
Also called business income coverage, this type of insurance helps you pay expenses and covers your earnings if your business becomes unable to operate because of a covered disruption.
If you can’t operate, you won’t make money and you’ll still have expenses to pay. Business interruption coverage is at the core of any commercial insurance plan.
Covered causes vary by policy but typically include natural disasters and weather-related incidents.
Product Liability Insurance
Product liability insurance is especially important for pet food manufacturers. It protects you in the event that a third party is damaged by your product.
For pet food manufacturers, this coverage protects you from the costs associated with being sued because your product makes someone’s pet sick. It will cover the cost of vet visits, economic damages, compensatory damages, attorney fees, court costs, and more.
Equipment Breakdown Insurance
Also called boiler and machinery coverage, this type of policy works with your business property insurance policy. It covers costs from accidental breakdowns of machinery and any property damage or loss that results.
Commercial Auto Insurance
An auto insurance policy protects your vehicle fleet and your drivers in the event of an accident. It will cover costs for property damage to your own vehicles as well as the other vehicles if your driver is at fault.
The liability portion will also cover expenses related to bodily injury claims of other drivers and passengers including medical bills and lawsuits.
Cargo and Goods-in-Transit Coverage
This coverage includes ocean marine and inland marine coverage. It protects your products as they are transported.
This type of policy covers the cost of goods that spoil on-site. As a pet food manufacturer, you can’t afford to lose product due to spoilage.
Utility Interruption Coverage
This type of coverage will reimburse you for any costs related to shutdowns of utility services that force you to temporarily halt production.
Directors and Officers Liability Insurance
This type of insurance is crucial for any business. It protects the directors and officers of your company from judgments and costs that arise from business decisions.
Product Recall Insurance
Perhaps the most important type of insurance specific to the pet food manufacturing industry is product recall insurance. Even if you take all necessary precautions to make sure your products are safe to consume, sometimes things happen that are beyond your control.
There are many aspects of a product recall that can harm your business and your bottom line. Here are some of the costs that a product recall insurance policy can cover:
- Recall costs including product removal and disposal
- Product replacement
- Loss of profit
- Extra expenses
- Reputation rebuilding expenses like public relations and communication costs
Workers’ Compensation Insurance
As a pet food manufacturing company, it’s important to protect your workers. Chances are, they work with heavy machinery in a factory environment where accidents tend to occur. They may also be exposed to pet food ingredients that can cause injury or illness.
Workers’ compensation insurance provides coverage for your workers when accidents or illnesses happen in the workplace. These policies provide income replacement and medical care for your injured workers.
Depending on where your business operates, you may be required to carry workers’ compensation insurance under state law.
Insure Your Business Today
Don’t wait to ensure your pet food manufacturing business is fully insured. Accidents can happen when you least expect them and you can’t afford unnecessary setbacks.
If you’re looking to insure your pet food manufacturing business, we are here for you. We can help you navigate the different types of insurance you need to fully protect your business.
Contact us today today to get started with a quote.