Energy Drink Business Insurance
Getting insurance for your energy drink business is essential.
Energy drink businesses need to be financially protected from product liability claims, personal injury claims, trademark infringement claims, and other legal risks.
For example, your energy drink could cause a customer to have an allergic reaction, or another brand could claim that your drink’s logo is too similar to theirs.
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 an Energy Drink Business
General liability insurance is — generally speaking — one of the most important insurance policies for energy drink businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Alongside your general liability policy, you need to consider other more specialized insurance that covers things that general liability insurance doesn’t. Such policies can include, for example:
- Workers’ compensation insurance
- Product liability insurance
- Commercial auto insurance
- Data breach insurance
One of the first decisions you will have to make when shopping for business insurance is who to buy it from. In general, there are two types of providers:
- Traditional brick-and-mortar insurers — Nationwide, Allstate, and The Hartford are well-known examples of traditional insurers. These companies are typically large and have physical offices where agents sell insurance in person. They provide high-quality coverage, but their way of doing business costs more. As a result, they aren’t the cheapest, fastest, or most flexible option.
- Online insurers — We recommend that small businesses turn to online insurers because of their speed, flexibility, and, most of all, low prices. Online insurers don’t use agents. Instead, they use AI to customize and sell policies over the internet. This lower overhead is passed onto consumers in the form of lower prices. You’ll also get your coverage faster with an online insurer.
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Cost of General Liability Insurance
On average, energy drink 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 an energy drink 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 an Energy Drink Business
Example 1: While visiting your manufacturing facility, a potential investor trips over a box of supplies, breaks an arm, and decides to sue your business. General liability insurance would cover your legal defense costs and any required settlement.
Example 2: Another energy drink business sues your company for libel. While you’re uncertain why this competitor believes you libeled his business, you want to hire an attorney to protect your interests. General liability insurance would pay for your legal defense.
Example 3: As an employee loads a pallet of product onto a truck in the parking lot, he accidentally hits a luxury sedan. General liability insurance would cover the vehicle repair costs.
Other Types of Coverage Energy Drink 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:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. 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.
Product Liability Insurance
While you label your products accurately to ensure customers use them responsibly, there’s always a chance someone might claim your product caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.
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 energy drink 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.
Energy Drink 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.
We feel that adequate business insurance is essential for your energy drink business's financial health, especially over the long term. Without insurance, your company will be exposed to all sorts of financial risks that could result in hardship or even bankruptcy.
Local laws also may require various types of business insurance, such as workers’ compensation, in order to operate legally.
Not necessarily. Certain exceptions may be written directly into your energy drink 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.