As a food manufacturer, you take great pride in providing high quality products to your retailers and customers. You also face a number of risks on the job every day. These exposures are different from other types of manufacturing companies. Between processing, packaging, distribution and strict health regulations, there are a lot of moving parts that you need to stay on top of.
Financial losses can occur from product spoilage, supply shortages, industrial hazards, equipment breakdown, product recall and lawsuits. These claims can have a devastating impact on your production line. They can also be dangerous to your customers, can damage your reputation and lead to revenue loss.
Major Threats to Food and Beverage Manufacturers
Machinery breakdown
Food and beverage manufacturers work with specialized equipment and machinery. While this machinery is critical to getting the job done, it can also malfunction, become damaged or break down. One small mistake in the production line can lead to a number of larger problems for food manufacturers. This loss of equipment can be costly to replace and can result in slowed or halted production while the machinery is being repaired.
Contamination and product recall
Product recalls cost food manufacturers millions every year. While some product recalls are issued as a precaution, others result from a report of product contamination. Even with the best quality control measures in place, you can’t always prevent a contaminated product from ending up in your customer’s hands. Sometimes, it isn’t just one company that feels the effects from a product recall. It can also effect retailers of your product and companies selling similar products. This is why it is important to have third party financial loss as part of your insurance package to ensure you are covered if this were to occur.
It is crucial to insure your manufacturing business in order to help protect you, your work and your equipment from unexpected and costly incidents. In addition to offering core coverages such as property, commercial general liability and commercial auto, Fuse Insurance also offers business-specific coverages including manufacturer’s errors and omissions, food product recall and business interruption.
The food and beverage manufacturing industry in Canada is highly complex. This is why it is important to work with an experienced insurance broker that understands and can better control the risks that you face. Fuse Insurance works with the top insurers in Canada to create insurance packages that are specialized for food manufacturers, so you can ensure that you are getting comprehensive coverage that addresses all areas of your business. Whether your food manufacturing facility is located in BC, Alberta, Saskatchewan, Manitoba or Ontario, we have extensive coverage options available for you. To get a quote today, use our online form or call 1-866-387-FUSE (3873) to get in contact with a Fuse Insurance broker.