Words of wisdom from our business insurance experts.
Don’t let a lawsuit or claim ruin your keto snack company. You have worked hard to create a business plan and build your company from scratch, so protect it with the right risk management plan that includes business insurance.
Our advisors can protect you in various risk scenarios, like replacing spoiled snacks after a power outage to repairing damage after an earthquake, or a lawsuit from customer that became ill after eating your product. A business insurance policy can help cover unexpected costs and allow you to continue to operate.
The first step to creating a business insurance policy is understanding the fundamental policies needed to safeguard your keto snack company. Below are the key insurance policies that every keto snack company should consider.
General Liability Insurance
This policy protects businesses from common lawsuits, such as bodily injury, property damage, and advertising injuries.
A general liability insurance policy will also cover advertising. For example, copyright infringement which can be a volatile and costly situation for a food company. The food industry draws inspiration from everywhere, and as a saturated industry it is important to utilize this policy for copyright infringement lawsuits.
Business Owner’s Policy (BOP)
This policy is also known as a BOP, is a commercial liability and property insurance which covers your office space, commercial kitchen, brick and mortar, and the belongings within it from damage, fire, vandalism, pipe bursts, or natural disasters. A BOP is a more comprehensive risk management solution that includes multiple forms of coverage, such as business interruption and property insurance.
Fullsteam Insurance Advisor Tip 1: Combining general liability and business property insurance into a business owner’s policy will not only save you money, but most small, low-risk startups are eligible for this insurance policy.
You made a huge investment in your equipment, supplies, inventory, and commercial kitchen or retail space. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the business materials you store there.
Product Liability Insurance
This insurance policy covers any legal fees and any required settlement from a lawsuit that claims your keto snack may have caused them harm. Remember, there is always a chance someone could make a claim like this can lead to financial loss and reputational damage.
For example, say you sell a new keto snack and one of the batches had an ingredient inside that caused your customers to get sick. There's a chance they decide to file lawsuits for compensation and your Product Liability policy will defend you.
Workers’ Compensation Insurance
This policy covers medical expenses associated with work injuries. This insurance policy is required by most states, except Texas. It not only covers an employee’s medical bills and lost wages but also any disability or death benefits stemming from a work-related accident.
For example, say one of your employees decides to carry too much weight and gets a back injury. Your Workers Compensation policy will cover medical bills associated with the back injury.
Inland Marine Insurance
Inland marine insurance is a type of property coverage that moves with your keto snacks. For example, this insurance policy will cover your keto products as they are transported to the retail outlet you are partnered with. The difference between inland marine insurance and commercial property is that commercial property policies only cover the products when it is located at the address on the policy. While inland marine insurance will cover your products if they are stolen, lost, or damaged in transport.
Commercial Umbrella Insurance
Umbrella insurance boosts coverage on a manufacturer's general liability insurance, commercial auto insurance, or employer’s liability insurance once the limit is reached. This covers customer injury lawsuits, customer property damage lawsuits, and employee injury lawsuits.
Fullsteam Insurance Advisor Tip 2: A certificate of insurance, is a simple method to prove contract requirements regarding insurance are met. Save yourself, partners, or landlord time by generating a certificate of insurance to review versus an entire insurance policy. This one-page document includes effective dates, limits of coverage, and insurance carriers providing the coverage. Typically, your insurance advisor will ask to the see the contract clause requiring the proof of insurance to ensure the certificate is up to par.
Fullsteam Insurance offers affordable coverage for any size of keto snack company, from a sole proprietorship business with one employee to a large business that spans several states with dozens of employees. Our priority is negotiating the best coverage at a competitive price and being flexible with our clients. At Fullsteam Insurance we have access to the most reputable insurance carriers in the business across the nation and we can tailor any business insurance policy to fit your needs today and as your company grows.
There are several factors that will have an impact on your business insurance costs and your Fullsteam insurance advisor will walk you through all of them:
- Products that are manufactured
- Business equipment and property
- Annual revenue
- Location of your business
- Size and classification of your workforce
Fullsteam Insurance Advisor Tip 3: Speak to a Fullsteam Insurance expert about coverage for your online e-commerce website. As most keto snack companies shift to being an online retailer, it is imperative to protect your business from any data breaches and implement cyber security with a cyber liability insurance policy.
It may seem like adding a risk management plan with business insurance can be expensive for your keto snack company, but the reality is the cost of an insurance policy is far less than the costs your business could face when claims are made against your firm.
Discover your trusted source for personalized business insurance policies for your keto snack company that shield your business from liability and always mitigate risk. Get the coverage you need at the price you want so you can concentrate on more important matters like creating new recipes, partnering with major retailers, and growing your business.