Manufacturing and processing companies are liable for the safety of their customers. However, this may not always be possible, especially for food and beverage companies. For this reason, businesses require to have product liability insurance to protect them when claims arise from unsatisfied customers. Food product liability insurance protects companies if their products cause harm to the user. For example, a child may get sick after eating packed lunch. Liability falls to the concerned company. Call a Bayonne Personal Injury attorney for a legal consultation regarding such lawsuits.
What is covered in the insurance policy?
- General liability: General liability does not cover premises and operations liability where the insured is involved in assembling and construction instead of making the products. Most food and beverage companies make completed products.
- Liquor liability: It can be purchased annually or per event. Purchasing per event depends on the type, gross sales, types of drinks, and the number of attendees.
- Property coverage: It covers mobile equipment, stock, office equipment, and inventory. It also includes safety protection such as fire suppression and theft alarm.
- Auto coverage: Food trucks, delivery vehicles, and refrigeration trucks.
- Workers compensation: Restaurant workers, delivery drivers, and other related staff.
Who should apply for food product liability cover?
Anyone tasked with the manufacture, design, sale, and distribution of end-user products should have the cover. Food product liability mostly applies to products that are ingested, but any other products of any nature require liability insurance. Businesses involved should have one regardless of whether they are subcontracted or produce their products.
How much do companies pay for food product liability insurance on average?
When calculating the costs, some factors play a role in influencing. Examples include annual sales and the nature of the product. You can find a policy that is highly-priced, while you could also find a cheap policy. It all depends on the operation and type of coverage. Additionally, it may be influenced by the amount of insurance. Products that pose more harm attract higher premiums than those with lower propensities to be risky. Therefore, we cannot say that there is an out of the box price in food liability insurance.
Importance of food product liability insurance
When debating on whether to buy food product liability insurance, you must consider a few things. What if someone suffered harm after taking your product? What if your stock is thrown away because it has become inedible? What will be the damage to your reputation in the long term? After asking yourself such questions, you will realize that as a food and beverage company selling products directly or indirectly to consumers, it will benefit your reputation and finances if you had food product liability insurance. You do not have to be a manufacturer. Being a selling or handling food at any stage is enough reason to take this cover.
Dealing with insurance companies is not easy. They will have every obstacle in place to hinder you from winning the right compensation. Therefore, you need a law firm that knows how to go about every step of a claim. Call a Bayonne Personal Injury attorney on 201-829-3829 to walk with you as a consultant and representative until you get what you deserve.