Bottled Water Business Insurance
Getting insurance for your bottled water business is essential.
Bottled water businesses need to be protected against things like claims of product liability, false advertising, and breach of contract.
For example, your business may make false statements regarding the purity of your water, or a customer may claim that your packaging is not environmentally friendly.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Bottled Water Business
General liability insurance is — generally speaking — one of the most important insurance policies for bottled water businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
That being said, many bottled water businesses make use of a number of additional insurance policies in order to better protect themselves, such as:
- Product liability insurance
- Workers’ compensation insurance
- Commercial auto insurance
- Commercial umbrella insurance
When you are shopping for insurance for your business, there are generally two kinds of providers to choose from:
- Traditional brick-and-mortar insurers: These firms, which include some of the largest in the country (e.g., Hiscox and The Hartford), are sought-after choices due to the reliability and accuracy of their policies.
- Online insurers: By using AI and foregoing a physical storefront, these providers are able to offer more affordable rates due to their reduced overheads, offering insurance that is just as accurate and customized with the power of AI.
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Cost of General Liability Insurance
On average, bottled water businesses in America spend between $500 - $1,200 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a bottled water business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Bottled Water Business
Example 1: While carrying a bottle of water into a customer’s home, you slip and drop it on the customer’s expensive camera equipment. General liability insurance would pay to repair or replace the customer’s damaged property.
Example 2: During a visit to your office, a client slips on a wet floor and decides to sue your business. General liability insurance would cover your legal defense and any required settlement.
Example 3: As you transport a full water bottle into a customer’s kitchen, you accidentally knock him over. The customer hits his head during the fall, suffers a concussion, and demands you pay for his medical care. General liability insurance would cover the injured customer’s medical treatment.
Other Types of Coverage Bottled Water Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
While you strive to produce a safe and delicious product, there’s always a chance someone might claim your product caused them harm. If a customer sues, product liability insurance would cover your legal fees and any required settlement.
Workers’ Compensation Insurance
If you have any employees, most states will require you to carry workers’ compensation insurance for both part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a work-related accident.
Commercial Auto Insurance
Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business materials you carry in your vehicle.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your bottled water business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Bottled Water Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
It is strongly recommended. Without adequate insurance in place for your bottled water business, it will be completely susceptible to any and all liabilities it may face – which could cause significant financial loss.
In addition to this, it is paramount that you are aware of any legal requirements to carry certain types of insurance that may apply to your business.
Not necessarily. Certain exceptions may be written directly into your bottled water business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.