Hull has a long and proud history of food manufacturing. It’s proximity to the sea, it’s easy accessibility to the farms of Yorkshire and Lincolnshire and, of the course, the Port make it the ideal place for such businesses. Little wonder then that food manufacturers are counted among Hull’s largest and most successful firms. Names like Croda, Andrew Marr International and William Jackson and Son are known throughout the world.
What’s less well-known is the types of insurance these businesses require to keep them, their employees and their customers safe. So, in this latest blog from Coversure Hull, we’ll look at some of the covers you’ll want to have in place and give you some advice that should provide food for thought….
What Insurance Do Food Manufacturers Need?
Manufacturing businesses in general have complex needs when it comes to insurance, but given these business’s outputs are destined for consumption, the risks are even greater. Below we list the main covers you’ll want to have in place;
As a manufacturer of food products should someone become ill as a result of consuming your goods you could be held liable in law and could even face a hefty compensation claim. Product liability insurance will protect you in the event of a case being brought against your business and can help with defence costs and compensation pay-outs.
Factories and processing plants are risky places given the levels of machinery involved – particularly where food processing is concerned given the possibility of wet floors and spilled ingredients. They are also places where members of the public are likely to come and go – be that visiting customers, inspectors or suppliers. This being the case it’s essential that you have adequate public liability insurance cover in place. Public liability cover will protect you from claims should someone be injured or their property damaged whilst on your premises.
If you have employees – be they full-time, part-time or contactors – then it is a legal requirement to have at least £5m of employers’ liability protection in place. Failure to have it can result in a fine of up to £2,500 per day. Employers’ liability protects you from claims that arise over an employee being injured or falling ill as a result of their work or working conditions.
Business Interruption Cover
Accidents happen, fires start, processing machines breakdown, pipes burst. These are all everyday risks within a manufacturing environment and given the nature of processing, if one element stops then the knock-on effects can be catastrophic. This is where business interruption cover comes in. In the event that you’re unable to continue with your normal business for a period of time, it will provide you with an income until you’re able to get things back up and running.
Suppose you’re a fish processor and one of your freezers goes down or you’re the owner of a vegetable processing plant and one of your grading lines breaks. You could be left holding a large quantity of perishable stock that will have to be destroyed. If you have stock cover then you’ll have the peace of mind that whatever other problems you have, losing money on ruined stock won’t be one of them.
Machinery/Plant And Tools Insurance
In your business you’re going to need a lot of specialist equipment, specialist expensive equipment. If that gets damaged – by an over-eager forklift driver, breaks down and needs repair or is damaged by fire or flood – then machinery/plant and tools cover can help save the day.
Goods In Transit
If, like many producers, you deliver your products to your customers or to other suppliers for further processing, then it’s a wise idea to have goods in transit insurance. Goods in transit cover will protect your products while they are being transported, so if they are lost, damaged or even stolen, you won’t be left out of pocket.
You may not think that as a food processing business that fleet insurance is right for you; after all, how many processors have dozens of company cars lined up outside, right? The reality is, however, that fleet protection is perfect for businesses such as these as it can not only protect as few as two vehicles, using a special types fleet policy you can cover everything from your forklifts and your delivery lorries to your company car and your high loader.
If all of the above sounds a bit complicated and like a lot of paperwork and a lot of insurance quotes, then why not take the easy option and get a commercial combined policy? Commercial combined cover is an affordable, flexible and powerful policy that allows you to pick a variety of elements and put them into one cover, cutting down admin time, renewal dates and can even save you money.
Like To Know More?
As you can see, when it comes to food processing insurance, Coversure Hull are the people to speak to. Whether you own one of Hull’s giants like Croda or Marr’s or have a small, independent artisanal operation, then we can help protect what matters to you.
If you’d like to know more about protecting your business or if you’d like some independent insurance advice, then please get in touch by calling Coversure Hull on (01482) 434343 and we’ll be happy to give you all the help you need.