Key Takeaways
- General liability insurance protects against lawsuits from product defects or injuries on premises.
- Property insurance reimburses repair/replacement costs from fires, flooding and equipment damage.
- Commercial auto insurance covers delivery fleet and employees commuting with personal vehicles.
- Workers’ compensation pays medical bills and lost wages for on-the-job injuries.
- Product recall insurance reimburses costs of removing defective products from the supply chain.
Introduction
As a manufacturer of frozen cakes, pies and other pastries, it is important to protect your business from risks that could cause financial losses. Several key types of business insurance provide protection tailored for this industry.
General Liability Insurance
General liability insurance provides important protection for frozen cake and pastry manufacturers against legal costs and damages from accidents or product defects. It covers lawsuits related to injuries on site, in delivery accidents, or issues with products. Some key benefits of general liability insurance for this industry include protecting assets from lawsuits, covering third party claims and defending the business if sued. Common uses involve product liability for defective goods, property damage from accidents and bodily injury to visitors. Estimated annual pricing is $3,000-$5,000 depending on business factors.
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Based on average rates for the frozen prepared food manufacturing industry, the estimated annual pricing for general liability insurance would be around $3,000-$5,000. Rates are typically calculated based on factors like annual revenue, number of employees, loss history, and risk level of the operations. Frozen food production generally has moderate risk levels.
Estimated Pricing: $3,000-$5,000
Property Insurance
“This reference provides beneficial information on property insurance for frozen cakes, pies, and pastries manufacturing businesses including the top benefits, use cases, and estimated pricing.”
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Based on industry data and average insurance rates, the estimated average annual pricing for property insurance for businesses in the frozen cakes, pies, and other pastries manufacturing industry (NAICS 311813) is around $3,500. This rate assumes an average insured property value of $2 million which is typical for manufacturing facilities of this size. The rate was calculated using an industry standard base property insurance rate of $1.50 per $100 of insured value.
Estimated Pricing: $3,500
Commercial Auto Insurance
“Commercial auto insurance is an essential risk management tool for businesses in the frozen cakes manufacturing industry. It provides critical liability and physical damage coverage needed to protect the company’s assets and limit financial risk from vehicle-related accidents during daily operations such as deliveries. This reference provides an overview of the top benefits, use cases, and estimated pricing of commercial auto insurance specifically for frozen cakes manufacturing businesses with NAICS Code 311813.”
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Based on industry data, the average commercial auto insurance pricing for businesses in the frozen cakes, pies, and other pastries manufacturing industry (NAICS Code 311813) is around $1,500 per year. This pricing was derived based on factors such as vehicle type (mostly cargo vans), average miles driven, business size, safety record, and loss history of the industry. The pricing also assumes standard coverage such as bodily injury, property damage, uninsured/underinsured motorists.
Estimated Pricing: $1,500
Workers Compensation Insurance
Workers compensation insurance provides important financial protections and medical benefits for both employers and employees in hazardous industries like frozen cakes and pastries manufacturing. It ensures employees receive assistance for work-related injuries while protecting employers from costly liability claims. The top estimated annual cost for workers compensation insurance for bakery manufacturers is $2.50 per $100 of payroll based on industry risks and average rates.
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Based on national average rates for the frozen bakery manufacturing industry (NAICS 311813), the estimated annual pricing for workers compensation insurance would be around $2.50 per $100 of payroll. This rate is calculated based on risk factors such as industry injury rates, potential hazards, staff roles/duties. The rate may vary slightly depending on company-specific risk assessments, safety practices, claim history, and other individual company underwriting factors.
Estimated Pricing: $2.50 per $100 of payroll
Product Recall Insurance
Product recall insurance is an important policy for frozen food manufacturers to protect their business from financial losses due to a product recall event. It reimburses costs associated with removing defective products from distribution channels, investigating issues, destroying affected inventory, and more. This type of insurance also provides liability protection and covers lawsuits and legal fees in the event a recall leads to injury or harm. In addition to direct costs of a recall, it reimburses for lost profits during the recall period when sales may be impacted. Recall risks for frozen food manufacturers include contamination from foreign materials, allergens, pathogens, or chemicals which could trigger a costly recall if not addressed.
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Based on typical industry practices, the estimated average pricing for product recall insurance for businesses in the frozen cakes, pies, and other pastries manufacturing industry with NAICS code 311813 is around $0.50-$1.00 per $1,000 of annual sales. This price range was derived considering factors such as the industry’s product risk level, average recall size and frequency, and liability risks. Most insurers would provide a price quote after evaluating individual business’ operations, safety practices, product lines, recall history, and other risk factors.
Estimated Pricing: $0.50 – $1.00 per $1,000 of annual sales
Conclusion
In summary, general liability, property, commercial auto, workers’ compensation and product recall insurance help mitigate risks specific to frozen food manufacturing. Purchasing the right coverage is essential to keep operations running smoothly in the event of unforeseen incidents.