Decreasing Your Liability Through Action And Information - A Guide To Insurance Coverage For Food Processors

The agricultural industry has long been the backbone of the American economy, and food processing companies are an essential part of that industry. If you operate such a company, however, it's vital that you have a complete understanding of potential risk factors and what you can do to mitigate them. 

These risk factors include not only those which threaten the quality and safety of your food but also those which could potentially do you significant economic harm. Below, you'll find a guide to insurance coverage that you should be sure to maintain for your food processing firm, providing you with the peace of mind of knowing you've significantly reduced your liability.

Product Recall Insurance

Food processors are perhaps responsible for conducting product recalls more frequently than any other industry. This is not the result of negligence or malfeasance on the part of processing company, but rather is simply the natural consequence of being responsible for products that both rapidly deteriorate and are designed for human consumption.

If you're forced to conduct a recall, you can suffer a significant blow to your cash flow and your business's stability. Investing in product recall insurance will provide you with some economic stability during such a difficult time and can help you weather the storm until you regain the trust of the public.

Fleet Vehicle Insurance

Working with food means having a reliable distribution network, and in order to do so, you'll likely need to maintain a fleet of vehicles. Paying individual auto insurance premiums on these vehicles can be a very large expense, and you should work to find a solution that provides coverage but is far less of a burden.

Your insurance provider will likely be able to offer you a fleet vehicle policy. This blanket coverage is designed to cover all vehicles being used in the process of conducting your business and should allow you to be fully protected from potential accidents and incidents on the road.

Umbrella Insurance

Ultimately, it's not the incidents you can predict that cause the most concern in the insurance industry. The incidents that you can't or didn't anticipate cause the most harm because they're the most unlikely to be covered. For protection in these instances, you should acquire umbrella insurance. These policies are designed to provide additional coverage over the maximums established in your other policies and can often be used to divert funds to situations which may be both unavoidable and totally unanticipated.

For more information, speak with experts like the Mariano Agency.