As an agrochemicals supplier, you know the importance of your role to farmers and their livelihood. You also know the risks associated with agrochemicals such as pesticides and fertilizers. You manage the challenges between producing, packaging, distributing, and selling agrochemicals that are effective for farmers and safe for consumers. You also manage the pollution effects of supplying agrochemicals.
If you aren’t careful, there could be huge damages and financial losses resulting from liability and lawsuits. But you can’t always control what happens. Whether you are an independent agrochemicals distributor or supply a network of farmers, purchasing agrochemicals supplier insurance from ALIGNED is important to protect your business against the risks of doing business.
Why is Agrochemicals Supplier Insurance Important?
Agrochemical suppliers have to develop, manufacture, and supply agrochemicals that help farmers grow their crops. Since these agrochemicals are used on the products that individuals and families eventually consume, the damages are high if anything goes wrong.
- Agrochemicals can seep into the surrounding land and water, which can cause pollution and illnesses.
- Excessive use or improper mixing and/or application of agrochemicals can cause quality-reduction in agricultural products.
- Consumers can get sick because of the agrochemicals used on the products.
- There can be site contaminations, spills, air pollution, etc., during the manufacturing and distribution process of agrochemicals.
Having custom agrochemicals supplier insurance can help you avoid costly financial losses and damages to your business and commercial assets.
Why Do Pesticides Manufacturers Need Insurance?
Pesticide manufacturers work with chemicals that can harm the environment and their clients. They operate specialized, expensive equipment and handle dangerous chemicals. Pesticide manufacturers can also be responsible for the transportation and distribution of pesticides to distribution centers or directly to a customer.
Throughout the process of manufacturing and distributing pesticides, there are risks of causing bodily injury, property damage, pollution, and more. Any of these risks can pose serious threats and financial setbacks.
Consider the following scenarios that could result in a lawsuit, claim or financial loss:
Example 1: While manufacturing the pesticides, the equipment that you use breaks down because of a heavy rainfall that floods your manufacturing plant. Your equipment needs to be repaired or replaced before you can use it again and resume operations. Insurance can cover the costs of fixing your equipment.
Example 2: While transporting the finished products to a customer’s distribution center, your equipment or employees damage the property of the client. The customer proceeds to sue your business and asks for compensation for the damages that your business caused. Insurance can cover the damages, legal fees, and settlements incurred.
What Type of Insurance Do Pesticides Manufacturers Need?
Insurance for pesticides manufacturers is designed to protect them from the various risks that they might encounter during daily operations.
Some of the common coverages that pesticide manufacturers can expect includes:
- Commercial General Liability Insurance – protects your business against lawsuits and liability alleging property damage, false advertising, injuries, libel, slander, etc., arising from the premises, operations, products, and completed operations of your business.
- Pollution Liability Insurance – there are pollution risks to the surrounding land, water systems, and air which cause injuries and property damage. Pollution liability insurance protects your business from liability, lawsuit, and cleanup costs for on-site and off-site pollution cases.
- Product Recall Insurance -harmful or defective agrochemical products can cause health risks. Product recall insurance protects you against financial losses for product recalls, such as lost profit, recall expenses, and replacement costs.
- Directors & Officers Insurance – protects the decision-makers of the agrochemicals supplier from claims of wrongful acts.
- Equipment Breakdown Insurance – the process of manufacturing and distributing agrochemicals to farmers relies on special equipment and machinery which can malfunction at any time. Equipment breakdown insurance covers the costs of equipment breakdowns resulting from insured perils.
- Commercial property insurance covers your property such as the equipment your business uses. If something happens to your equipment or your equipment gets damaged in a flood, theft, vandalism, etc., you will get compensated for the damages, repairs, and replacements.
- Product liability insurance covers your business from lawsuits if exposure to the pesticides you manufacture causes environmental damages or bodily harm to a third party.
How Much Does Pesticides Manufacturers Insurance Cost?
The cost of your pesticides manufacturers insurance can vary significantly depending on your business, coverage needs, and insurance company that you use.
Each insurance company has various criteria and methods of calculating your risk and insurance premiums. Some of these factors include:
- Business size
- Manufacturing plant location
- The total value of equipment you own
- The amount of experience of your business
- The annual sales and payroll
- Number of employees
Insurance companies can provide an insurance quote based on your information to determine an accurate estimation of your insurance premium.
Supply Your Business with the Perfect Agrochemicals Supplier Insurance
ALIGNED works with Canada’s top insurance companies to provide custom insurance packages at affordable prices. Contact an ALIGNED commercial insurance specialist for a free quote, or use our free online tool today.
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