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Company insurance is intended to safeguard the financial assets of a business owner and is a crucial investment for a jam producer.

Jam Makers

This article will discuss the primary insurance coverage for jam manufacturers, general liability insurance, as well as additional products that are appropriate for this industry.

Jam Makers’ General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.

Situations That A Jam Maker’s General Liability Insurance May Cover

As part of your company strategy, you provide jam-making workshops to the local community. One of the pupils gets seriously burnt during one of the lessons, necessitating a trip to the hospital and nearly $10,000 in medical fees. A general liability coverage should cover the pupils’ medical expenditures as well as any prospective legal fees.

Example 2: You learn that your company’s label is remarkably similar to another company’s and is protected by copyright. The company claiming ownership is suing for copyright violation. Your legal bills and any payment received as a consequence of this litigation would be covered by general liability insurance.

Example 3: At a local farmer’s market, a consumer crashes into a display, causing it to collapse on another client. The client has an arm injury and is unable to work for many weeks. All medical expenditures, mandatory follow-up rehabilitative treatment, and any legal payment linked with the injury should be covered by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

The typical American jam producer pays between $400 and $1,500 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Jam Makers

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all jam manufacturers should have are as follows:

Insurance for Product Liability

Product liability insurance is essential for every company that manufactures and sells a product to the general public. When dealing with food, it is possible that a client can get unwell, forcing them to miss work or incur medical expenditures. Product liability insurance protects you against losses caused by the products you sell.

Product liability insurance is customised to your company’s needs and the items it sells.

Insurance for Home-Based Businesses

Many jam-making companies begin as a home-based enterprise, with all equipment and product kept in the owner’s main house. When an accident happens as a consequence of company activity or a loss occurs in the home, many business owners discover that they are uninsured or underinsured for these losses. Home-based business insurance fills in the gaps, protecting against losses that are not covered by a conventional homeowner’s policy.

Typically, home-based business insurance is obtained as part of a company owner’s coverage (BOP). Some homeowner’s insurance plans provide this coverage as a rider for an extra fee (extension of coverage).

Coverage Options for Some Jam Makers

In addition to the insurance listed above, your jam manufacturing firm may need other forms of coverage based on particular features of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Commercial Vehicles

If your company provides delivery services, you must have the state-mandated levels of commercial auto insurance on all cars in your fleet. A commercial car insurance coverage protects company-owned vehicles that are operated on public roads. Commercial vehicle insurance is often acquired in conjunction with a BOP.

Insurance for Workers’ Compensation

If you employ people in your jam-making firm, you are almost certainly obliged by state law to get workers’ compensation insurance. Workers’ compensation pays for an employee’s medical expenditures if they are injured on the job. While it is not always necessary, many company owners choose to include themselves on their workers’ compensation coverage.

Workers’ compensation insurance is often acquired as a separate policy.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.