What Insurance Do Winnipeg Agribusinesses Need?

October 17, 2024 / 5 mins read

Without enough liability insurance, your Winnipeg agribusiness could face costly and damaging lawsuits related to the food and beverages you process.

Winnipeg agricultural companies need to have their business insurance tailored to their liability risks.

If your agribusiness is located in Winnipeg or elsewhere in Manitoba, your Western Financial Group business insurance broker will get you commercial coverage that provides customized liability protection. We’ll also get you insurance to protect your agribusiness’s other needs.

Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance to businesses. We work with our insurance partners to find the best coverage for your needs.

We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Winnipeg agribusiness’s specific needs.

Agribusiness in Winnipeg

Winnipeg is home to many of Canada's leading international agribusiness companies, research and development centres and industry associations. There are 100 food and beverage manufacturing companies located in Winnipeg.

What’s agribusiness?

Agribusinesses involve the production, processing, and distribution of farm-based goods. Agribusiness companies comprise all aspects of food production, such as food and beverage processing.

Agribusiness combines the words “agriculture” and “business.”

What companies needs agribusiness insurance?

Agribusinesses include:

  • Meat processing
  • Seed oil processing
  • Oat processing
  • Pea protein processing
  • Hemp food products manufacturers
  • Potato processing
  • Beverage processing
  • Other food processing companies
  • Agri-food research centres
  • Producer associations

Liability insurance is an essential part of your agribusiness insurance package to protect your company financially from lawsuits.

Here are the liability insurance coverages that your Winnipeg agribusiness needs:

Product liability insurance

Product liability insurance protects Winnipeg agribusiness companies against claims alleging third-party property damage or bodily injury caused by a product you manufacture, distribute, or sell.

Product liability protects your business if a product harms a customer, even if you’re not at fault or it wasn’t your intention.

Product liability insurance covers:

  • Design defects: There’s something wrong with the product’s design.
  • Manufacturing defects: Something went wrong during manufacturing.
  • Marketing missteps: A mistake in marketing materials, such as improper labels.
  • Insufficient warnings: The product doesn’t include sufficient warning/information about potential harm.

Also consider product recall insurance

This type of coverage helps Winnipeg agribusiness owners recoup the cost of recalling products due to a defect, whether that recall is voluntary or involuntary (if it’s ordered by a government or regulatory agency). Product recall insurance covers your shipping, warehousing, disposal, and restocking costs.

Commercial general liability insurance

This is necessary liability insurance for Manitoba agribusinesses. Without commercial general liability insurance, you will pay costs related to third-party (customer/supplier) injuries or damage to their property out of your own pocket.

If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your agricultural company in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.

What kind of risks does commercial general liability insurance cover?

  • Injury to a third party who is not your employee
  • Damage to someone’s property
  • Damage to rented property
  • Medical bills if someone is injured
  • Legal costs and settlement costs of liability lawsuits filed against you
  • Liability lawsuits related to slander and libel

Cyber liability insurance: If you keep client data and their payments information, your agribusiness could be hacked by cyberthieves. Cyber liability insurance will help protect the firm financially should there be a cyber-attack.

Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.

Professional liability insurance

Professional liability insurance helps protect Winnipeg agricultural companies when there are claims of negligence when they are performing their duties. It’s also called errors and omissions insurance.

A client could sue you for negligence, mistakes, omissions, or failing to deliver a service as promised that causes them to suffer a financial loss. For instance, if a food product you produce for them fails to meet their specifications.

What other insurance do Winnipeg agribusinesses need?

Commercial property insurance

Commercial property insurance provides financial support to replace or cover repairs to your Winnipeg agribusiness if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.

Commercial property insurance also covers contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.

Business interruption insurance

This type of insurance supports you when your Winnipeg agribusiness cannot operate due to a covered loss.

There are a number of losses that could force your agribusiness to shut down. Some examples are:

  • Damage to your equipment from fire or vandalism
  • A major reduction in revenue due to a client/supplier facing losses of their own
  • A disruption in your supply chain

Business interruption insurance can help with these expenses:

  • Payroll
  • Rent
  • Utilities
  • Property taxes
  • Alarm monitoring
  • Relocation of your business

Equipment breakdown insurance

Your agribusiness processing plant has expensive equipment and machinery. Equipment breakdown insurance covers machinery from costs associated with sudden or accidental breakdown of electronic or mechanical machinery.

Commercial auto insurance

If you are using your car for your job in the financial services industry, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.

How much does Winnipeg agribusiness insurance cost?

The following factors are usually considered when determining the cost of your business insurance:

  • Location(s)
  • Services provided
  • Number of employees
  • Years of experience
  • Annual revenue
  • Any past claims

What do I do if I have a claim against my Winnipeg agribusiness company?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Here’s an insurance checklist:

  • Do you have the best business insurance rate that suits your work?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage as a Winnipeg agribusiness company. Our experts are available now to help you navigate the business insurance journey to protect your Manitoba agribusiness.

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