Every industry needs good insurance policies for it to run smoothly. The CPG industry is not an exception. However, conventional insurance quotes cannot suffice for a CPG business. The peculiarities of the business require that it has special insurance policies provided for the smooth running of the company.
Managing the risks of a CPG brand can be quite demanding. The brands can’t determine the extent of the insurance coverage they need. Also, insurance brokers do not understand what the business of consumer-packaged goods (CPG) entails. Therefore, there are always gaps in the insurance policies of CPG brands. They are either underinsured or mis-insured.
When events like product recall and contamination happen, there are many implications especially financial ones for a CPG brand. These risks have to be covered in an insurance policy. Huge costs are involved in recalling products off the shelves, destroying them and replacing them with new ones. The interesting thing to note is that insurance policies on product recall vary. CPG brands also risk lawsuits by consumers who claim damage done to them by-products.
CPG companies also deal with risks associated with conventional companies such as employee management, fidelity, and many others. They even have more auto risk to deal with considering their extensive use of automobiles to transport their goods.
There are not many options for CPG insurance brokers available nationwide. There are only a few insurance companies dedicated to CPG companies to help them manage the peculiar risks they encounter in their daily business.
Some of these CPG insurance brokers include:
Titanium CPG insurance
Founded by veterans who were once in the CPG business, Titanium promises to offer insurance packages that fit and suit the risks and opportunities associated with the business. They provide a robust catalog of insurance policies for CPG brands.
Amelia is an all-women-managed insurance brokerage company dedicated to managing unique risk industries and the CPG industry is part of their reach. They provide a variety of coverage policies such as product liability.
There are various kinds of insurance policies provided by CPG insurance brokers for their clients. Based on the needs of the CPG company, the CPG insurance broker implements the appropriate policies. Some of the policies available include product recall, product liability, general liability, umbrella liability, auto liability, stock throughput, and many others. These policies cover specific risks associated with the CPG industry.
For example, product recall covers the costs associated with recalling defective products, destroying them and replacing them with new ones while product liability comes into play when there is a claim of physical injury or damage by a consumer due to a product. Each of these insurance policies is well suited to the peculiarities of a CPG brand.
It is recommended that CPG brands ensure adequate insurance of their products as the only way they can successfully scale through the hurdles and uncertainties of the marketplace.