Key Takeaways
- General liability insurance covers legal costs and damages from injuries on your premises or defects in products
- Commercial property insurance protects facilities and equipment from losses like fire, flooding and storms
- Workers’ compensation ensures injured employees receive pay and medical care while recovering
- Product liability coverage protects against lawsuits if customers get sick from eating canned goods
- Commercial auto policies cover vehicles used to transport goods, materials and employees
- Cyber liability covers costs of data breaches and system interruptions from cyber attacks
- Machinery breakdown insurance covers repair/replacement costs for critical food processing equipment
- Business interruption insurance covers lost income/profits if operations are disrupted by insured events
Introduction
As a fruit and vegetable canning business, there are several types of business insurance that are critical to protect your operations, employees and finances. This guide outlines the top insurances to consider and their key benefits specific to the industry.
General Liability Insurance
General liability insurance provides protection for fruit and vegetable canning businesses against costly legal claims and risks associated with food manufacturing operations. It covers a variety of incidents such as customer injuries, product defects, transportation accidents, and liability from chemical storage and handling. Key benefits include protection of business assets and financial compensation for legal fees, settlements, and judgments. Pricing is estimated at $5,000-$8,000 annually based on typical industry factors.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical industry factors such as payroll, number of employees, past claims, types of products manufactured, the estimated average annual pricing for general liability insurance for fruit and vegetable canning businesses is around $5,000-$8,000. Payroll is a major factor affecting pricing, with higher payrolls resulting in higher prices. The number of employees and any recent claims or unsafe practices also impact pricing.
Estimated Pricing: $5,000-$8,000
Commercial Property Insurance
Commercial property insurance provides protection against property damage and losses for businesses in the fruit and vegetable canning industry. It helps ensure business continuity and financial security following a covered loss.
Some key benefits of commercial property insurance for fruit and vegetable canning businesses include protecting specialized equipment, inventory, facilities and interrupting business operations from unexpected losses. It also provides liability coverage and funding to meet code compliance after a covered loss.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis, the average price for commercial property insurance for businesses in the fruit and vegetable canning industry with NAICS code 311421 is around $2.50 per $100 of insured value. This price was derived from industry reports and assumes the business has no major claims or losses in the past 5 years. It also assumes the building is made of noncombustible materials like concrete or steel.
Estimated Pricing: $2.50/$100
Product Liability Insurance
Product liability insurance provides protection for fruit and vegetable canning businesses against costly lawsuits and claims if a customer becomes ill from eating one of their canned food products. It covers expenses related to injuries, medical bills, lost income, legal costs and damages. The insurance also protects against costs of product recalls if contaminated products are discovered, reimburses medical costs for customers who get sick, pays for loss of business income during a recall event, and typically costs $2.50 per $100 of gross receipts with a $2,500 minimum premium.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average pricing for product liability insurance for fruit and vegetable canning businesses (NAICS 311421) is around $2.50 per $100 of gross receipts, with a minimum premium of $2,500. Factors that affect pricing include things like claims history, food safety certifications and procedures, number of products/SKUs, and sales volume.
Estimated Pricing: $2.50 per $100 of gross receipts, minimum $2,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides invaluable coverage for businesses in the fruit and vegetable canning industry. As shown in the reference, this industry faces significant injury risks for workers involved with operating machinery, lifting heavy goods, and exposure to chemicals. Ensuring employees have wage replacement and medical benefits if hurt on the job helps these companies maintain productivity and ensure worker wellbeing. Top benefits of this insurance for these businesses include protection from liability claims, attracting quality job applicants through injury protection, reducing turnover resulting from job injuries, and allowing injured employees to focus solely on recovery without financial worries. Common injury risks reflected in typical use cases are handling heavy equipment, potential chemical exposures, manual lifting tasks risking injury over time, and slips or falls due to wet processing environments. Estimated pricing for this industry averages $1.30 per $100 of payroll based on average claim experiences.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on national average rates from major insurance carriers for the fruit and vegetable canning industry (NAICS 311421), the estimated average annual premium cost per $100 of payroll is approximately $1.30. This rate is derived from injury and claim statistics specific to this industry which shows an average claim frequency and severity. The fruit and vegetable canning process involves machinery operation which can pose risks to workers.
Estimated Pricing: $1.30 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance provides important liability and property protection for businesses in the fruit and vegetable canning industry that rely on vehicles to transport goods, raw materials, employees, waste and more throughout their supply chain operations. It outlines the top benefits of commercial auto insurance like liability protection, vehicle damage coverage, medical payments, replacement costs, towing assistance, cargo coverage, and coverage for non-owned vehicles. Additionally, it provides examples of key use cases for commercial auto insurance in this industry like delivering products, transporting materials, employee commuting, and transporting waste. Furthermore, it gives an estimated average annual premium of $1,800 for commercial auto insurance policies in this industry.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data, the average commercial auto insurance premium for businesses in the fruit and vegetable canning industry (NAICS 311421) is around $1,800 per year. This pricing takes into account factors like the types of vehicles used, number of vehicles, driver qualifications, safety records, and average claims in the industry.
Estimated Pricing: $1,800
Machinery Breakdown Insurance
Machinery breakdown insurance provides crucial financial protection for businesses in the fruit and vegetable canning industry. As operations rely heavily on specialized equipment, an unexpected breakdown could cause costly downtime and repairs. This type of insurance helps offset those risks and expenses. It protects profits by ensuring minimal disruptions for equipment servicing or unexpected breakdowns. The top benefits include coverage for repair/replacement costs, lost income during downtime, and additional expenses like temporary equipment rentals. It also covers food loss from issues like refrigeration failure. Common equipment needs can include pasteurizers, filling machines, sealing machines, refrigeration units, conveyor belts, and packaging systems.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
After reviewing the industry profile of fruit and vegetable canning (NAICS 311421), its typical machinery assets and exposures, common cause of losses, past loss history, and location factors, the estimated average annualized pricing for machinery breakdown insurance would be around $3.50 per $100 of insured value. This pricing is calculated based on the industry having high-value yet sensitive processing machinery that are prone to breakdowns from overuse and wear-and-tear. The facilities also typically operate for extended hours during peak seasons. However, the industry also has good risk management and safety practices in place to minimize accidental damages.
Estimated Pricing: $3.50 per $100 of insured value
Cyber Liability Insurance
As a fruit and vegetable canning business, cyber liability insurance provides important protection against the financial risks of data breaches, cyber attacks, errors and omissions, and network security failures. Top benefits of cyber liability insurance include covering costs associated with data breaches, cyber attacks, business interruptions, liability from harming third parties, legal costs, crisis management expenses, unauthorized access, and restoring brand reputation after an attack. Key use cases that policy may cover include data breaches involving customer or employee information, cyber extortion, network hacks, third party vendor failures, and errors in website or app design leading to privacy issues. Estimated average annual premium for businesses in this industry with $5-10M revenues and 50-100 employees would be around $3,500.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical factors used to calculate cyber liability insurance pricing such as annual revenues, number of employees, prior cyber incident history, and security measures/practices in place, the average estimated annual premium for a small to mid-size business in the fruit and vegetable canning industry (NAICS 311421) with annual revenues between $5-10 million and 50-100 employees would be around $3,500. This was calculated using commonly available cyber insurance pricing models and tools.
Estimated Pricing: $3,500
Business Interruption Insurance
Business interruption insurance provides vital protection for businesses in the food manufacturing industry. It ensures companies can continue operating and cover expenses if production is unexpectedly disrupted by events like equipment failures, natural disasters, or supply chain issues.
Business interruption insurance covers lost income or profits during downtime needed to repair damage and restart operations after an insured disruption occurs. It also reimburses extra expenses incurred to reduce losses and help businesses avoid further financial impacts.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on analyzing previous claims data and business profiles for the fruit and vegetable canning industry, the estimated average annual pricing for business interruption insurance would be around $20,000. This price was derived by taking into account factors such as average revenue, profit margins, property values, geographic locations, claim histories, and insurance company risk assessments for disruptions from natural disasters, equipment failures, supply chain issues for this industry.
Estimated Pricing: $20,000
Conclusion
Maintaining the proper insurance coverage gives fruit and vegetable canning businesses financial protection and peace of mind. It ensures your company can withstand unexpected events like injuries, equipment failures or natural disasters without lasting damage. Consider working with an insurance broker to review your specific risks and needs.