Food Distributor Insurance

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Food is on the move in your supply chain.

Whether you focus on broad line distribution or are a specialty distributor of specific niche products like steak, vegetables, or fish, the nature of your business is to get your food from one destination to another. A food distributor insurance policy can help you get coverage while in transit, in storage, and beyond.

What businesses may benefit from this coverage?

As a food distribution business, your employees often need to operate vehicles to distribute food. Depending on the number and size of these vehicles, you’ll need to have either fleet insurance or business auto insurance. In addition, the scale of your organization and the type of food distribution you do matter. Here are some examples of the types of food distribution businesses that may benefit from this type of policy:

  • Broad Line Distributors
  • Cash and Carry Distributors
  • Redistributors
  • Specialty Distributors

Warehouses are commercial property.

As a food distributor, you most likely have a warehouse where you store your stock while you arrange for transport. Commercial property insurance is an important part of any food distributor insurance program for making sure your building is protected in the event of damage. Not only that, commercial property insurance covers your inventory and any machinery you have. Having insurance coverage may help protect your food distribution business against the loss of replacing lost or damaged property.

Food distribution has its own unique risks.

When dealing with food, there are various safety considerations you have to keep in mind for your consumer. If the food in your network spoils, it may not only cause loss of revenue, it could also lead a consumer to become ill, leaving you liable. That’s why it’s important to consider a general liability insurance policy that includes food spoilage liability and food-borne illness liability. The former will help protect your business from lost revenue in the event the food goes bad and can’t be sold. The latter will help cover your business in the event a consumer becomes ill from any products your business distributed, an incident you could be held responsible for.

Your business might be open to theft.

Food distributors typically have a lot of stock in inventory at any one time. Whether in a warehouse or in transit, your business could become a victim of theft. A crime insurance policy may help protect you in the event of a robbery, burglary, and even employee dishonesty. In some cases, policies may be customized to cover things like the destruction of electronic data and fuel cards. In the event a theft occurs, crime insurance can help keep your business running despite the loss.

Other coverages for food distributors.

Just like any other business, there are some general coverages you’ll want to include in your food distributor insurance program, such as cyber liability insurance. With the world becoming more digital, you’ll want to make sure your business is protected in the event of a data breach. Also, you’ll want to look into inland marine insurance, which may cover any of your equipment while it’s in transit over land and can work well with a business auto or fleet insurance policy.

Would you like more information about food distributor insurance coverage for your business? Contact us so we can take a look at your needs and coverage options.