Learn how pet food manufacturers insurance helps pet food & pottery industry manufacturing businesses protect themselves against the many complex risks they face every day. Whether your business is large or small, or you make one or many products - you need the right commercial insurance program to protect you.
Pet Food Manufacturers Insurance
Pet Food Manufacturers Insurance. Pet food manufacturers produce food for dogs, cats, birds, fish, reptiles, and other animals kept as household pets.
Dog and cat food consists predominantly of grains, meat, and meat by-products with minerals and vitamins added as nutrients. Food for pet birds consists primarily of dried or roasted seeds. Fish food consists of vegetable or animal proteins plus spirulina. Reptiles may require live worms and insects, which are typically raised on special farms. Grains are milled, meats are generally ground and cooked, and the ingredients are combined with additives such as vitamins or preservatives.
The final product is then packaged into cans or bags. Pet foods are regulated by the Food and Drug Administration (FDA).
As a pet food manufacturer, you go to great lengths to ensure that the products you are producing meet the nutritional needs of beloved family animals. You also work hard to make sure that the needs of all of your clients and your employees are being met. And of course, you take great care to protect your commercial property, equipment, and inventory. However, despite your best intentions, there are issues that can arise.
In the event that the unthinkable happens, it's crucial that you have the right type of pet food manufacturers insurance coverage.
Why Pet Food Manufacturing Insurance Is Important
There are so many different issues that can arise in the pet food manufacturing industry. These issues can include food recalls, lawsuits, disgruntled clients, and employee mishaps; just to name a few. For example, if the pet food you produce is recalled because an ingredient that you purchased from a supplier was tainted, you could be looking at major legal problems; not to mention all of the food that you could lose. Or, a delivery person could trip over something on your commercial property and suffer a serious injury and sue you for the damages.
If these types of situations arise - or any number of others - as the proprietor of your pet food manufacturing business, you will be held liable. That means that you will have to foot the bill for any damages and legal ramifications. These types of costs can be astronomical and cause serious financial hardship. In order to avoid financial devastation, it's absolutely essential that you have the right type of insurance protection.
Should a liability issue arise, your insurance company will help to pay for the costs that are associated with said issue. For instance, if someone files a lawsuit against you claiming negligence, your insurance provider would help to assist with the cost of legal defense fees, as well as any damages that may be awarded. In other words, pet food manufacturers insurance helps to protect you and your business against serious financial losses.
What Types of Insurance Coverage Should Pet Food Manufacturers Carry?
The specific types of insurance policies you should carry will depend on a variety of factors, including the size of your pet food manufacturing business, where your business is located, and more. However, the following pet food manufacturers insurance policies are highly recommended - and some are legally required - for pet food manufacturing businesses.
- Product Liability - Though you do your best to make the safest and more nutritious food, there are problems that can arise during the production process. For example, a piece of machinery could break and the parts could end up falling into a batch of pet food. If that happens and a client feeds his or her pet the food, the client could take legal action against you citing negligence on the behalf of your company and claiming that your food injured their animal. Product liability insurance would protect you from such an incident.
- Commercial Property - Storms and fire happen, so do acts of vandalism and theft. If your business is damaged in a storm or if it's vandalized or broken into, commercial property insurance will help to cover the costs of the damages or the goods that have been stolen. For instance, if someone vandalizes the signage on your property, your provider will pay to repair the damage; or, if your inventory is stolen your carrier would cover the cost of the stolen merchandise.
- Commercial Liability - This type of insurance provides protection against third-party claims. For instance, if a vendor or client flips and falls on your commercial property, your insurance would cover the cost of the necessary medical care, as well as any associated legal fees.
- Workers Compensation - No matter how many employees you have, workers comp insurance is a must. This coverage will pay for any employee injuries or illnesses that occur while they are on the job. It assists with medical care, as well as lost wages, preventing you from having to pay these fees out of your own pocket.
These are just a few of the types of pet food manufacturers insurance policies that pet food manufacturing companies should carry.
Pet Food Products Manufacturing's Perils And Risks
Property exposure consists of an office, plant, and warehousing for raw materials and finished goods. There may be large storage bins or conveyor systems to transport and feed ingredients into processing equipment. Ignition sources include electrical wiring, heating and cooling equipment, and production machinery, which may overheat or exceed the capabilities of electrical wiring.
Flammable lubricants and cleaning agents should be stored away from combustibles. An explosion may arise when grain dust generated during handling, and especially milling, is ignited by sparks from conveyor systems, or when stored grain becomes wet. This hazard increases in the absence of well-maintained dust collection systems. Raw ingredients and finished pet food products are susceptible to damage by fire, moisture, pests, and smoke.
Equipment breakdown exposures include breakdown losses to the processing systems, electrical control panels, refrigeration equipment used to store meat and by-products, and other apparatus. Breakdown and loss of use of the production or refrigeration machinery could result in a significant loss, both direct and indirect, such as time element.
Crime exposures are chiefly from employee dishonesty and theft of money and securities. Employees may act alone or in collusion with outsiders in stealing money, trade secrets, or finished stock. Background checks should be conducted on all employees. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information as well as testing, quality control results, and proprietary formulas. Goods in transit may be damaged by fire, theft, collision and overturn, spillage, contamination, or spoilage due to the breakdown of refrigeration units.
Premises liability exposure is high because of the explosion potential of some ingredients, particularly grains. Visitors on tours or independent contract farmers and slaughterhouses delivering raw materials to the plant may be injured by slips, trips, or falls, or may be exposed to toxic or caustic chemicals. Toxins released in a fire or fumes, spills or leaks from chemical tanks may cause serious injury or property damage to neighboring properties.
If there is a railroad sidetrack or dock, an employee must verify that no one is in the path of an incoming or outgoing train. Railroad tracks, large storage bins, and conveyors can be attractive nuisances. The premises should be enclosed by fencing with "No Trespassing" signs posted.
Product liability exposure is moderate to high since spoilage or contamination, whether by pests, bacteria, or chemicals, may cause illness or death to a large number of pets. Quality control at all phases of the operation from product development to packaging is critical. Significant injuries or damage may follow from improper mixing of ingredients, improper storage, during transport or even inappropriate packaging and labeling.
Environmental impairment exposure is moderate. Waste from animal by-products may develop bacterial contaminants that could affect air, surface or ground water, or soil. Processes may cause thermal or noise pollution. Disposal procedures must adhere to all EPA and other regulatory standards.
Commercial auto exposure may be high if the manufacturer transports raw materials or finished products. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others. Each driver should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location. Refrigerated trucks may be required to transport products that are sensitive to changes in temperature.
Workers compensation exposures can be moderate to high. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, hearing loss from machinery noise, and back injuries from lifting. Chemicals and dust can irritate eyes and lungs, and result in respiratory illness. Repetitive motion injuries can result from the ongoing use of machinery. Workers may fall into storage bins and suffocate.
Employees should be provided with safety training, protective equipment, and guards on machines. Workers must be made aware of the potential side effects of the ingredients they work with, including long-term occupational disease hazards, so they can be aware of warning symptoms and obtain treatment as early as possible. Drivers of forklifts and vehicles may be injured in accidents.
Pet Food Manufacturers Insurance - The Bottom Line
We hope this article on pet food manufacturers insurance has been informative. To find out exactly what type of coverage you need and how much you should carry, talk to a reliable business insurance agent as soon as possible.
Further Reading On Manufacturing & Product Liability Insurance
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- Corrugated Box
- Dye And Pigment
- Exercise Equipment
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- Marijuana And Cannabis Products
- Medical Equipment
- Pet Food
- Product Contamination Insurance
- Product Recall Insurance For Manufacturers
- Product Liability Insurance vs General Liability
- Rubber Goods
- Screw Machine
- Sporting Goods
- Vitamins, Nutraceuticals & Dietary Supplements
- Wood Furniture