Home – New Forums Logistics Insurance for food wholesale and retail business

  • This topic is empty.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • #988992
    Rey
    Member
    • Total posts: 33
    Up
    0
    ::

    I am starting a business to import food products and sell them in Australia wholesale, retail and online.

    What kind of insurance do I need to buy?

    Please suggest few business insurance providers and any particular reasonable packages

    Thank you!

    #1169971
    CaraTee
    Member
    • Total posts: 77
    Up
    0
    ::

    I have a small retail food business that i run from home. I just have standard public liability from CGU – I think its like $40 pcm for $5 or $10mil? But check your policy – I am only covered if I am complying with legislation I was told. Ie. I need to have appropriate food license and permits with my council and be transporting the foods in accordance with their guidelines. Ie. I can’t use AUSPOST.

    #1169972
    CaraTee
    Member
    • Total posts: 77
    Up
    0
    ::

    oh and i also have personal insurance payable to me/hubby if Im unable to work. We looking at another food business and if it goes ahead we will get personal insurance owned by the business.

    #1169973
    alliedib
    Member
    • Total posts: 453
    Up
    0
    ::

    Hi Rey,

    As you will be importing, you will be considered a manufacturer by most insurers and will be assessed as such. Depending on the type of food that you are importing, some insurers will be more willing to help that others. I provide insurance for a lot of importers – the common questions that the insurers ask are:
    – where are you importing from;
    – what are the quality controls that the manufacturers have;
    – are you able to identify which batches you have been supplied, and where you have sold them to (this is especially important where you do not have exclusive distribution rights); and
    – are the products required to conform to any Australian Standards.

    Generally speaking, as CaraTee advised you will not have any cover under Products Liability if you are breaching any legislative or standards requirements.

    The cost of the Liability cover is determined on a number of factors, including the type of products being imported. Most insurers also have minimum premiums (this is sometimes an issue if you only have a small turnover).

    In addition to Liability cover, you should consider the following insurances:
    – Property (for the Stock once it arrives in Australia, as well as your office Contents etc)
    – Transit (for bringing the Stock to Australia or for transit to purchasers)
    – Business Interruption (Income Protection for the business)
    – Cyber (if you are selling online)
    – Product Recall / Contaminated Products (a very valuable cover, albeit quite expensive)
    – Workers Compensation
    – Personal Accident
    amongst others.

    Insurance is something you want to get structured correctly (especially for something like importing). Probably best that you get in contact with an insurance broker who can assist you in identifying your exposures and how they can be best covered. They also will have access to products that the direct insurance market can’t (won’t) provide.

    Let me know if you have any questions or need me to clarify anything for you.

    Regards,

    Mark

    #1169974
    MH08
    Member
    • Total posts: 284
    Up
    0
    ::

    I’m interested, what are you importing?

Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.