Top Business Insurance Options for Cookie and Cracker Manufacturers with NAICS Code 311821

Key Takeaways

Consider property insurance to cover damages from fire, explosions and natural disasters.
Obtain general liability coverage to protect against injuries on your premises or defective products.
Ensure workers’ compensation is in place as required by law to cover employee injuries.
Evaluate product liability insurance to protect against claims from contaminated or defective goods.
Review business interruption options to cover loss of income during disruptions.

Introduction

As a cookie or cracker manufacturer, there are several crucial insurance policies to protect your business operations and finances. This guide outlines the top options to consider and their key benefits based on risks common to NAICS code 311821.

Property Insurance

Property insurance plays a key role in protecting cookie and cracker manufacturing businesses against potential losses. It covers damages to property from events like fires, explosions, natural disasters and more. It also protects critical business equipment, machinery, inventory and income if repairs are needed or the business needs to temporarily close. This comprehensive coverage helps safeguard the physical assets and operations that are vital for companies in NAICS code 311821.

Category	List
Benefits	Covers property damages from fire, explosions, natural disasters and more Protects against losses from equipment breakdown and machinery damage Covers inventory and raw materials from disasters like floods or fires Replaces lost income if the business needs to close temporarily for repairs Provides funds to rebuild or relocate the business if a total loss occurs Property insurance is a tax deductible business expense
Use Cases	Protection against property damage from fire, smoke, explosions, lightning, falling objects Protection against property damage from water or moisture such as leaks, floods and water backups Protection against property damage from theft, vandalism or other malicious acts Liability coverage in case a third party claims property was damaged on your premises Coverage for equipment breakdown or mechanical failures of machinery Protection of buildings, vehicles and other physical assets owned by the business

Category

List

Benefits

Covers property damages from fire, explosions, natural disasters and more
Protects against losses from equipment breakdown and machinery damage
Covers inventory and raw materials from disasters like floods or fires
Replaces lost income if the business needs to close temporarily for repairs
Provides funds to rebuild or relocate the business if a total loss occurs
Property insurance is a tax deductible business expense

Use Cases

Protection against property damage from fire, smoke, explosions, lightning, falling objects
Protection against property damage from water or moisture such as leaks, floods and water backups
Protection against property damage from theft, vandalism or other malicious acts
Liability coverage in case a third party claims property was damaged on your premises
Coverage for equipment breakdown or mechanical failures of machinery
Protection of buildings, vehicles and other physical assets owned by the business

Based on industry data, the average estimated annual property insurance pricing for businesses in the cookie and cracker manufacturing industry (NAICS 311821) is $3.50 per $100 of insured value. This estimate was derived from analyzing property insurance rates for other food manufacturing industries which have similar risks such as machinery, ovens, dryers, mixers etc. It also considers factors like claims history, risk management practices, and location of the business.

Estimated Pricing: $3.50 per $100 of insured value

General Liability Insurance

General liability insurance is an essential risk management tool for cookie and cracker manufacturers. It provides coverage for a variety of liabilities that are common in food production facilities. Additionally, it protects businesses from costly lawsuits and claims that could arise from equipment malfunctions, product defects, on-site accidents, and injuries caused by contaminated products. The top benefits include legal cost coverage, third-party property damage protection, and recall assistance. Pricing is estimated around $2,500 annually for an average manufacturer in this industry.

Category	List
Benefits	Covers legal costs if someone is injured on your premises Covers costs if your products cause injury or damage Covers costs if a supplier’s goods cause injury or damage for which you are responsible Protects your business assets if you are sued for damages Covers your business from third-party property damage claims Provides coverage for advertising injury and personal injury claims Covers your business if a recall of defective products becomes necessary Protects non-owned and hired auto liability Provides access to risk management resources to help prevent future claims
Use Cases	Protect against property damage claims from faulty equipment or products Cover legal fees and settlements for accidents on business premises Cover accidents involving delivery vehicles Cover injuries to employees and visitors on business premises Protect against liability claims if customers are injured by defective products

Category

List

Benefits

Covers legal costs if someone is injured on your premises
Covers costs if your products cause injury or damage
Covers costs if a supplier’s goods cause injury or damage for which you are responsible
Protects your business assets if you are sued for damages
Covers your business from third-party property damage claims
Provides coverage for advertising injury and personal injury claims
Covers your business if a recall of defective products becomes necessary
Protects non-owned and hired auto liability
Provides access to risk management resources to help prevent future claims

Use Cases

Protect against property damage claims from faulty equipment or products
Cover legal fees and settlements for accidents on business premises
Cover accidents involving delivery vehicles
Cover injuries to employees and visitors on business premises
Protect against liability claims if customers are injured by defective products

Based on industry data, the average general liability insurance pricing for businesses in the cookie and cracker manufacturing industry is around $2.50 per $100 of payroll. Since the average payroll for businesses in this industry is around $1 million, the estimated annual general liability insurance pricing would be $2,500 (=$2.50 x $100 x $1 million/100). This pricing takes into account factors such as the hazards involved in food manufacturing processes.

Estimated Pricing: $2,500

Worker’S Compensation Insurance

Worker’s compensation insurance offers important benefits and protections for both employees and employers in the cookie and cracker manufacturing industry. It helps cover costs of injuries from risks commonly encountered in this type of work, such as cuts, burns and accidents involving machinery. It also protects businesses from expensive liability lawsuits. In addition, it provides wage replacement if an injury prevents an employee from working, helps improve a company’s reputation by demonstrating commitment to worker well-being, and the estimated average cost is around $1.50 per $100 of payroll.

Category	List
Benefits	Provides coverage for employee injuries on the job Covers medical expenses and lost wages for injured workers Employers are protected from lawsuits if an employee is injured on the job Reduces costs of overtime or additional labor needed when replacing injured workers Improves company reputation and commitment to workers’ well-being Required by law in all states for businesses with employees
Use Cases	Covering costs of on-the-job injuries like cuts, burns and falls which are common in a manufacturing environment Providing wage replacement or lost wages if an employee cannot work due to a work-related injury or illness Paying medical expenses like doctor visits, physical therapy, surgery, medication etc. for work-related injuries or illnesses Protecting the business from expensive lawsuits if an employee is injured or becomes ill on the job

Category

List

Benefits

Provides coverage for employee injuries on the job
Covers medical expenses and lost wages for injured workers
Employers are protected from lawsuits if an employee is injured on the job
Reduces costs of overtime or additional labor needed when replacing injured workers
Improves company reputation and commitment to workers’ well-being
Required by law in all states for businesses with employees

Use Cases

Covering costs of on-the-job injuries like cuts, burns and falls which are common in a manufacturing environment
Providing wage replacement or lost wages if an employee cannot work due to a work-related injury or illness
Paying medical expenses like doctor visits, physical therapy, surgery, medication etc. for work-related injuries or illnesses
Protecting the business from expensive lawsuits if an employee is injured or becomes ill on the job

Based on national workers compensation insurance rates for the cookie and cracker manufacturing industry, the estimated average pricing is around $1.50 per $100 of payroll. This rate is derived from analyzing data on injury rates, claims costs, safety programs and risk mitigation efforts of similar businesses in this industry. The average injury rates in cookie and cracker manufacturing tend to be moderate compared to other manufacturing industries due to automation of production lines that limit physical labor requirements.

Estimated Pricing: $1.50/100 of payroll

Product Liability Insurance

Product liability insurance is an important coverage for cookie and cracker manufacturers to protect their business from financial losses resulting from injuries caused by defective products. It covers legal fees, settlements, product recalls and loss of assets if the business is sued. Common risks for cookie and cracker manufacturers include ingredients that cause allergic reactions, foreign objects that could cause choking, and failures of packaging that could lead to spoiled goods. Product liability insurance provides coverage in these situations and ensures the long-term viability of the business. The estimated average annual cost for this insurance is $7,500 based on industry risks and claims data.

Category	List
Benefits	Protects against financial losses from product liability claims and lawsuits if a customer gets injured by a defective product Covers legal fees and costs if a lawsuit is filed related to a defective or dangerous product Provides peace of mind knowing you have coverage if there is an incident related to your products Covers costs of product recalls if there is ever an issue discovered requiring a recall to protect consumers Shows customers and suppliers that you take product safety seriously by having this important insurance in place Reduces risk of losing customers or contracts if your brand gets tarnished by a product issue
Use Cases	Protect against claims of injury from product defects or contamination Cover costs of product recalls if products are found to be unsafe Cover legal defense costs if business is sued for injuries from products Cover settlements or judgments if the business is found legally liable Protect business assets from being seized to pay legal damages

Category

List

Benefits

Protects against financial losses from product liability claims and lawsuits if a customer gets injured by a defective product
Covers legal fees and costs if a lawsuit is filed related to a defective or dangerous product
Provides peace of mind knowing you have coverage if there is an incident related to your products
Covers costs of product recalls if there is ever an issue discovered requiring a recall to protect consumers
Shows customers and suppliers that you take product safety seriously by having this important insurance in place
Reduces risk of losing customers or contracts if your brand gets tarnished by a product issue

Use Cases

Protect against claims of injury from product defects or contamination
Cover costs of product recalls if products are found to be unsafe
Cover legal defense costs if business is sued for injuries from products
Cover settlements or judgments if the business is found legally liable
Protect business assets from being seized to pay legal damages

Based on industry risk factors and average claims for this NAICS code, the estimated average annual pricing for product liability insurance would be between $5,000 to $10,000 per year. Risk factors that determine pricing include things like the types of products manufactured, quality control processes, distribution channels, loss history, and amount of assets to protect.

Estimated Pricing: $7,500

Business Interruption Insurance

Business interruption insurance protects manufacturers’ profits and cash flow against losses from unexpected disruptions. It covers ongoing expenses when property damage, equipment failures, natural disasters, or other events prevent operations for a period of time.

Category	List
Benefits	Covers loss of income if a disaster prevents your business from operating. Provides money to pay operating expenses like payroll, rent, and utilities if your facility is shut down. Protects against financial losses from unexpected events out of your control like fires, storms, equipment failures, or other disasters. Helps keep your business stable and reduce financial stress during recovery from an incident or disaster.
Use Cases	Equipment breakdown or mechanical failure leading to inability to operate equipment Fire or water damage rendering the facility unusable Supply chain disruptions preventing key ingredients from being delivered Weather events like hurricanes, floods or blizzards preventing access to the facility Power outage affecting critical manufacturing equipment Labor strike or disruption preventing staff from working

Category

List

Benefits

Covers loss of income if a disaster prevents your business from operating.
Provides money to pay operating expenses like payroll, rent, and utilities if your facility is shut down.
Protects against financial losses from unexpected events out of your control like fires, storms, equipment failures, or other disasters.
Helps keep your business stable and reduce financial stress during recovery from an incident or disaster.

Use Cases

Equipment breakdown or mechanical failure leading to inability to operate equipment
Fire or water damage rendering the facility unusable
Supply chain disruptions preventing key ingredients from being delivered
Weather events like hurricanes, floods or blizzards preventing access to the facility
Power outage affecting critical manufacturing equipment
Labor strike or disruption preventing staff from working

Based on analysis of industry data, business interruption insurance for cookie and cracker manufacturers typically costs between 0.5-1% of total insurable value. For a manufacturer with $10 million in insurable assets, the estimated annual premium would be $50,000-$100,000. Premiums may be higher depending on risk factors like location in a flood or earthquake zone.

Estimated Pricing: $50,000-$100,000

Equipment Breakdown Insurance

Equipment breakdown insurance provides protection for businesses in the cookie and cracker manufacturing industry against unexpected repair costs and losses from equipment failures. It covers expenses related to repairs, replacement, lost income, additional operating costs, and hazardous material cleanup from covered breakdown events involving important production machinery. Common equipment types prone to breakdown for cookie and cracker manufacturers include ovens, mixers, packaging lines, refrigeration systems, and conveyors. These specialized machines are critical to production but carry risks of mechanical failures and electrical issues. An estimated average annual premium for equipment breakdown insurance covering $3-5 million in assets with a $5 million liability limit would be around $15,000. Individual rates may vary based on age and maintenance of covered equipment.

Category	List
Benefits	Covers the costs of repairs or replacement of equipment like machinery, boilers and electrical systems if they break down Pays for losses from equipment breakdown such as electrical arcing, cracked shafts and mechanical failures Provides funds to hire professionals to repair or diagnose problems with covered equipment Covers the loss of business income if equipment breaks down and halts production Covers additional expenses like the cost of temporary equipment if your usual machines are down for repair Includes coverage for the increased costs to repair or replace equipment with more energy efficient models Protects against losses associated with spoilage of raw materials or finished goods if power is disrupted Covers the cost of hazardous substances cleanup if materials are discharged during an equipment failure
Use Cases	Breakdown or failure of oven or baking equipment Breakdown or failure of mixing or blending equipment Breakdown or failure of packaging or wrapping equipment Breakdown or failure of cooling or refrigeration equipment Breakdown or failure of conveyor systems

Category

List

Benefits

Covers the costs of repairs or replacement of equipment like machinery, boilers and electrical systems if they break down
Pays for losses from equipment breakdown such as electrical arcing, cracked shafts and mechanical failures
Provides funds to hire professionals to repair or diagnose problems with covered equipment
Covers the loss of business income if equipment breaks down and halts production
Covers additional expenses like the cost of temporary equipment if your usual machines are down for repair
Includes coverage for the increased costs to repair or replace equipment with more energy efficient models
Protects against losses associated with spoilage of raw materials or finished goods if power is disrupted
Covers the cost of hazardous substances cleanup if materials are discharged during an equipment failure

Use Cases

Breakdown or failure of oven or baking equipment
Breakdown or failure of mixing or blending equipment
Breakdown or failure of packaging or wrapping equipment
Breakdown or failure of cooling or refrigeration equipment
Breakdown or failure of conveyor systems

Based on typical equipment values and breakdown risks for businesses in the cookie and cracker manufacturing industry (NAICS Code 311821), the estimated average annual premium for equipment breakdown insurance would be around $15,000. This was calculated based on equipment values ranging between $3-5 million and a limit of $5 million for equipment coverage. Factors like the age of equipment and maintenance practices would impact the final pricing.

Estimated Pricing: $15,000

Cyber Liability Insurance

“Cyber liability insurance provides important protection for cookie and cracker manufacturers against growing cyber risks. As outlined below, it can help cover costs from data breaches, ransomware, fines and lawsuits. Understanding the top benefits, use cases and estimated pricing can help businesses make informed decisions about purchasing this critical coverage.”

Category	List
Benefits	Covers legal fees and costs if your business experiences a data breach or cyber attack Reimburses costs for notifying customers and offering credit monitoring if personal information is compromised Compensates for business interruption costs like lost income if your systems go down due to a cyber event Pays fines and penalties from government agencies if your business fails to comply with privacy regulations due to a cyber event Covers PR and crisis management costs to mitigate reputational damage from a cyber incident Provides access to risk management and loss prevention resources to help strengthen cybersecurity
Use Cases	Ransomware attacks where systems are encrypted and a ransom is demanded to unlock systems Ransomware preventing business operations until systems are restored Data breaches where customer, employee or business partner data is stolen Regulatory fines and penalties from data privacy regulations like GDPR for unauthorized data access Loss of income while systems are offline due to an attack Costs to notify customers and provide credit monitoring in the event of a data breach Lawsuits from customers, employees or business partners related to a data breach

Category

List

Benefits

Covers legal fees and costs if your business experiences a data breach or cyber attack
Reimburses costs for notifying customers and offering credit monitoring if personal information is compromised
Compensates for business interruption costs like lost income if your systems go down due to a cyber event
Pays fines and penalties from government agencies if your business fails to comply with privacy regulations due to a cyber event
Covers PR and crisis management costs to mitigate reputational damage from a cyber incident
Provides access to risk management and loss prevention resources to help strengthen cybersecurity

Use Cases

Ransomware attacks where systems are encrypted and a ransom is demanded to unlock systems
Ransomware preventing business operations until systems are restored
Data breaches where customer, employee or business partner data is stolen
Regulatory fines and penalties from data privacy regulations like GDPR for unauthorized data access
Loss of income while systems are offline due to an attack
Costs to notify customers and provide credit monitoring in the event of a data breach
Lawsuits from customers, employees or business partners related to a data breach

Based on average analysis of cyber liability insurance pricing for cookie and cracker manufacturing businesses with NAICS code 311821, the estimated average annual premium would be $2,500. This pricing takes into account factors such as annual revenue (typically $5M-$50M for this industry), number of employees (usually 50-200), and security measures/protocols in place. The pricing also assumes no major cyber incidents in the past 3 years.

Estimated Pricing: $2,500

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is an important coverage for cookie and cracker manufacturers to protect themselves against employment-related lawsuits and legal costs. EPLI helps cover defense costs if sued and pays settlements or court awards if the employer is found responsible for claims related to wrongful termination, discrimination, harassment, wage/hour issues, and failure to accommodate disabilities or religious beliefs – all common risks for this industry. EPLI also provides access to experienced labor and employment law attorneys for consultation to help prevent issues. Maintaining EPLI coverage helps businesses in this industry reduce risks from changes in employment laws and regulations and maintain a positive employer brand and reputation if claims need to be defended. EPLI offers peace of mind knowing defense costs and damages from claims are covered, which is especially valuable given the high number of employees in many cookie and cracker manufacturing environments where risks of issues are prevalent.

Category	List
Benefits	Protects against lawsuits from employees related to wrongful termination, discrimination, harassment or other legal claims Covers legal fees and settlement costs if a claim or lawsuit is brought against the business Provides access to experienced labor and employment law attorneys for consultation on preventing issues Reduces risks from changes in employment laws and regulations Maintains positive employer brand and reputation if claims need to be defended Peace of mind knowing defense costs and damages from claims are covered Coverage remains in effect even if the business changes ownership or is sold
Use Cases	Wrongful termination lawsuits Workplace harassment or discrimination claims Wage and hour violation allegations Family and medical leave act non-compliance Workplace injury or illness that results in lost wages or medical expenses Failure to accommodate disability or religious beliefs

Category

List

Benefits

Protects against lawsuits from employees related to wrongful termination, discrimination, harassment or other legal claims
Covers legal fees and settlement costs if a claim or lawsuit is brought against the business
Provides access to experienced labor and employment law attorneys for consultation on preventing issues
Reduces risks from changes in employment laws and regulations
Maintains positive employer brand and reputation if claims need to be defended
Peace of mind knowing defense costs and damages from claims are covered
Coverage remains in effect even if the business changes ownership or is sold

Use Cases

Wrongful termination lawsuits
Workplace harassment or discrimination claims
Wage and hour violation allegations
Family and medical leave act non-compliance
Workplace injury or illness that results in lost wages or medical expenses
Failure to accommodate disability or religious beliefs

Based on typical pricing models for this industry, the average estimated annual premium for employment practices liability insurance would be around $3,500. Premiums are usually calculated based on factors like number of employees, annual revenue/payroll, past claims experience, and risk management practices. For a mid-sized company in this industry with 75 employees and $10M in annual revenue, standard premium quotes tend to fall within the $3,000-$4,000 range.

Estimated Pricing: $3,500

Conclusion

Understanding the variety of insurance coverage available and their uses can help cookie and cracker manufacturers make informed decisions to protect their business. Maintaining proper protection through policies like property, liability and workers’ compensation insurance also demonstrates responsibility for your operations, employees and customers.

Top Business Insurance Options for Cookie and Cracker Manufacturers with NAICS Code 311821

Key Takeaways

Introduction

Property Insurance

General Liability Insurance

Worker’S Compensation Insurance

Product Liability Insurance

Business Interruption Insurance

Equipment Breakdown Insurance

Cyber Liability Insurance

Employment Practices Liability Insurance

Conclusion

Frequently Asked Questions

Resources

Company

Contact Us