Key Takeaways
- Property insurance protects your buildings, equipment and inventory from damage and loss.
- General liability insurance protects your business from bodily injury and property damage claims from others.
- Refrigeration equipment breakdown insurance covers repairs if expensive cold storage machinery breaks down.
- Business interruption insurance replaces lost income if your facility temporarily shuts down.
- Workers’ compensation insurance covers medical costs and lost wages if staff get hurt on the job.
Introduction
As a refrigerated warehousing and storage business, you face unique risks due to your dependence on specialized equipment to store perishable goods at regulated temperatures. Various forms of insurance are critical to protecting your finances and ability to operate smoothly despite unforeseen events like equipment breakdowns, accidents or natural disasters. This guide covers the top insurance policies every facility in this industry needs.
Property Insurance
Property insurance provides crucial protection for refrigerated warehousing and storage businesses by reimbursing costs of repairing or replacing insured property after accidents, disasters and other events covered by the policy. This allows businesses to continue operating without financial disruption. Additional key benefits of property insurance for these businesses include protecting refrigerated goods from spoilage due to power outages or equipment failures, as well as liability coverage for accidents occurring on the premises. Property insurance is especially important for these businesses given their reliance on specialized refrigeration equipment and temperature-controlled facilities to store perishable goods.
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Based on industry analysis, the average pricing for property insurance for refrigerated warehousing and storage businesses is about $1.25 per square foot annually. This rate takes into account factors like the high value of inventory that requires specialized refrigeration, equipment needed to maintain cold storage, and the risks associated with power outages or equipment malfunctions. The rate was derived from typical policy rates charged by top insurers for this industry.
Estimated Pricing: $1.25/sqft annually
General Liability Insurance
General liability insurance is an important coverage for refrigerated warehousing and storage businesses to protect against costly third-party claims and litigation. It covers claims for bodily injury, property damage, product contamination and more that could result from business operations. Businesses in this industry face risks such as cargo damage, accidents involving heavy machinery, contamination incidents, delivery issues and more. Having the right liability limits can help cover related expenses, outages, recalls and lawsuits from incidents that are common in refrigerated warehousing and storage facilities.
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Based on analyzing industry reports and average pricing data from top insurance carriers, the estimated average annual pricing for general liability insurance for refrigerated warehousing and storage businesses with NAICS code 493120 is around $5,000-$7,000. This pricing assumes no major claims history, moderate risk level based on business operations and safety protocols, and $1-$5 million liability limits. The pricing was derived from common factors insurance underwriters examine such as operations, safety practices, number of employees, past incidents and claims, and liability limits needed.
Estimated Pricing: $5,000-$7,000
Refrigeration Equipment Breakdown Insurance
Refrigeration equipment is essential for businesses in the refrigerated warehousing and storage industry. Unplanned failures can disrupt operations and cause costly repairs, food loss, business interruptions and disposal costs. Refrigeration equipment breakdown insurance provides financial protection against these unexpected expenses and helps protect these businesses from unforeseen costs associated with equipment repairs, spoilage, liability, disposal and business interruption resulting from equipment breakdown.
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Based on typical industry factors such as average value of refrigeration equipment, number of units, past losses, and risk prevention methods, the estimated average annual premium for refrigeration equipment breakdown insurance would be between $5,000 to $10,000 per year. The pricing is usually calculated based on the total replacement value of all refrigeration equipment, with considerations for the size and number of facilities, safety systems and protocols in place, and loss history if any.
Estimated Pricing: $5,000 to $10,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides crucial protections for employees and employers in the refrigerated warehousing and storage industry. In this physically demanding field, it ensures employees receive medical care and lost wages if injured on the job while protecting businesses from costly liability. Key benefits of workers’ comp insurance for this industry include coverage for on-the-job injuries, medical expenses, lost wages, and liability protection for businesses. The top use cases reflect the physically demanding nature of the work handling heavy cargo, operating machinery, and working in cold conditions. Estimated average pricing for this industry is around $2.50 per $100 of payroll.
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Based on industry data and average claims, the estimated average pricing for workers’ compensation insurance for businesses in the Refrigerated Warehousing and Storage with NAICS Code: 493120 Industry is around $2.50 per $100 of payroll. This rate is derived from considering factors like industry risk level, company size, past claims, and safety measures taken by the business.
Estimated Pricing: $2.50/$100 of payroll
Business Interruption Insurance
Business interruption insurance provides crucial financial protection for refrigerated warehousing and storage businesses. It covers losses that occur when the operation must suspend activities due to unforeseen accidents, equipment issues, natural disasters, or other events outside of the business’s control. Business interruption insurance can help cover fixed costs like rent, utilities, and payroll during periods of downtime to repair damage and resume operations. It also reimburses extra expenses needed to maintain business continuity, such as alternative facilities or equipment rental. This type of insurance gives warehouses peace of mind in knowing they are protected from financial losses due to interruptions beyond their control.
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Based on industry analysis, the average annual business interruption insurance pricing for refrigerated warehousing and storage businesses with NAICS code 493120 is approximately $3.50 per $100 of sales. This price was derived by taking the industry average sales for these types of businesses and estimating potential losses from various hazards like power outages, equipment failures, etc. and factoring in the probability of occurrence.
Estimated Pricing: $3.50 per $100 of sales
Conclusion
Choosing the right types and levels of coverage from a reputable insurer is important to safeguard your business. With strong property, liability, equipment and lost income protection in place, you can focus on efficient operations without worrying about potential financial losses from operational risks outside of your control.