Food and Beverage Manufacturing Insurance

Food and Beverage Manufacturer Insurance

Safeguard your business and livelihood from the risks associated with food and beverage manufacturing with a customized insurance policy.

Zensurance - Food Manufacturer

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Food business owner

Insurance for food and beverage manufacturers

Food and beverage producers and manufacturers provide Canadians with the nutritious and delicious foods and drinks we need.

According to government data, there are more than 7,800 food and beverage manufacturing and processing companies in Canada. It’s the second-largest manufacturing industry in the country in terms of value of production, accounting for an estimated 17% of total manufacturing sales and 2% of our national gross domestic product.

Whether your small business produces processed meats, baked goods, or soda pop and fruit juices, you face challenges and risks unique to your operations. You need to protect your business and finances with a comprehensive food and beverage manufacturing insurance policy.

A food and beverage manufacturing insurance policy is designed to provide you with financial support and protection for your organization against the type of problems and potential liabilities food and beverage producers face.

A comprehensive, tailored policy from Zensurance provides food and beverage manufacturers with protection for challenges ranging from third-party bodily injury and property damage claims or lawsuits to coverage for your business’s property and equipment.

A food and beverage manufacturing insurance policy may include the following coverages:

  • Commercial General Liability (CGL) Insurance: CGL shields your regular business activities from third-party bodily injury and property damage claims or lawsuits that result from accidents or negligence. Commonly referred to as ‘slip-and-fall’ insurance, it covers you for the cost of accidents that cause personal injury or property damage to a third party on your premises or another location. CGL may also include product liability insurance – a must-have for food and beverage producers – which covers you for claims or legal action against you for any food or beverage item you manufacture, distribute, or sell.
  • Commercial Property Insurance: Commercial property insurance is designed to protect your physical assets such as your office, manufacturing facility, business contents and inventory if damaged or destroyed by fire, flood, or a natural disaster. It also provides coverage for your business property if you experience damage or loss because of theft or vandalism. Commercial property coverage may also include business interruption insurance to provide you with funds if your facility must close for repairs following an insurable loss.
  • Product Recall Insurance: Helps business owners recoup the cost of recalling products due to a defect, whether that recall is voluntary or involuntary (ordered by a government or regulatory agency). Recalls are typically triggered when a product poses a health risk to consumers, and they can be costly. Product recall insurance covers your shipping, warehousing, disposal, and restocking costs.
  • Equipment Breakdown Insurance: Your food and beverage manufacturing plant houses expensive equipment and machinery. Equipment breakdown insurance covers machinery from costs associated with electronic or mechanical internal malfunctions.
  • Errors and Omissions (E&O) Insurance: E&O insurance provides you with support if one of your clients alleges or sues you for negligence, mistakes, omissions, or failing to deliver a service as promised that causes them to suffer a financial loss. For instance, if a food item you produce for them fails to meet their specifications.
  • Commercial Auto Insurance: Your organization’s business vehicles need to be protected by a commercial auto insurance policy (private-passenger auto insurance is not designed to cover vehicles used for business purposes). This insurance protects your vehicles and full-time employees who drive them for third-party liabilities or damages.
  • Cyber Liability Insurance: Cyber liability insurance shelters your organization from cybersecurity-related risks involving your software, data, and computer hardware if you suffer a data breach or cyber-attack. It includes financial support to repair and restore your software and data, legal advice, credit monitoring, and for losses sustained to your business because of an outage triggered by a cyber incident.

There may be additional coverage your business requires. Speak to a Zensurance licensed broker if you have questions about your coverage and policy limits.

The cost of a food and beverage manufacturing insurance policy varies by insurance provider. Providers consider several factors when pricing your policy, including:

  • The types of products you produce
  • The location of your facility
  • Your business’s size and the number of employees
  • Your years of experience
  • Annual and gross projected revenue
  • The types of equipment you have
  • Your business’s insurance claim history

Getting insured is quick and easy!

Complete our 5-minute online application for a free food manufacturing insurance quote.

Common claims scenarios

product recall at food manufacturing plant

Problem: A food item your facility produces is recalled because it is contaminated.

Outcome: Your product liability insurance may pay the costs of the recall and legal support if you are sued by a third party.

fire at food manufacturing facility

Problem: A fire rips through your manufacturing facility causing significant damage to the building and its contents.

Outcome: Your commercial property insurance may pay to repair the damages to the facility and replace the contents and inventory lost in the fire.

industrial oven making bread

Problem: An industrial oven used for baking bread and other pastries stops working after a sudden electrical surge damages it.

Outcome: Your equipment breakdown insurance may pay to repair or replace the damaged oven.

Frequently asked questions

Does business interruption insurance include coverage for decontaminating my facility’s food processing machinery if impacted by smoke damage following a fire?

Yes. Following an insurable loss such as a fire, if your facility is forced to close for repairs and cleanup, business interruption coverage is designed to pay your overhead costs, including costs related to decontaminating your equipment and machinery.

Does a food and beverage manufacturing insurance policy include coverage for the products I ship to my clients?

Depending on your specific needs, you may need to include cargo insurance (also called transit insurance or inland marine insurance) for products you ship by truck or train over land.

What are the primary risks food and beverage manufacturers face?

Among the most significant risks facing food and beverage producers and manufacturers is product spoilage and food contamination. Other primary risks include fires at your facility, machine malfunctions, and cyber-attacks.

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Ready to start? Let’s get a quote!

Protect the ‘meat and potatoes’ of your small business with a comprehensive food and beverage manufacturing insurance policy from Zensurance.

Fill out an online application to get a free quote. Our friendly brokers will shop our extensive partner network of over 50 insurance providers to get the coverage you need at a price that meets your budget.