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Unlocking Cold Storage Insurance with Flex


Cold storage building with crates that are stacked filled with perishable goods

The agricultural industry plays a crucial role in feeding the world's population and cold storage buildings are essential for preserving perishable goods. Insuring these facilities can be a complex task due to various risk factors that are unique to the agriculture sector. In this blog post, we will explore the challenges associated with insuring cold storage buildings and highlight how Flex, a property-only insurance product, is specifically designed to address the needs of "hard-to-place" farm and agribusiness risks.


Challenges in Insuring Cold Storage Buildings

  1. Unique Risk Profile: Cold storage facilities face distinct risks compared to conventional commercial buildings. They must maintain precise temperature and humidity conditions to ensure the quality and safety of perishable goods. Any equipment failure, power outage, or temperature fluctuation can result in spoilage and financial losses. Cold storage buildings also contain specialized machinery, making them more susceptible to damage from equipment breakdowns, mechanical failures, or structural issues. Such vulnerabilities can increase the cost of repairs and replacement.

  2. Environmental Factors: Agricultural facilities are exposed to the same environmental risks as any other property including natural disasters such as hurricanes, tornados, etc. With typically much higher total insured values (TIVs), insurance companies have been moving away from accepting these risks in recent years, thus creating a frustrating lack of options in the insurance sphere.

  3. Changing Regulatory Environment: The agricultural industry operates within a dynamic regulatory landscape with evolving food safety regulations and compliance requirements. Insurers must stay updated on these changes to ensure adequate coverage and risk mitigation for cold storage facilities.

  4. Lack of Standard Insurance Products: Traditional insurance products may not adequately address the unique needs of cold storage buildings. Standard and general policies for commercial businesses often overlook critical and niche aspects such as mechanical breakdown coverage and business interruption coverage.

To address these challenges, Agribusiness Risk Underwriters has developed Flex, a property-only insurance product designed specifically for "hard-to-place" farm and agribusiness risks. Flex offers several key features that make it an ideal solution for insuring cold storage buildings containing dairy, produce, meat, etc.:

  1. Customized Coverage: Flex provides comprehensive coverage tailored to the specific needs of cold storage facilities. It takes into account the specialized equipment, refrigeration systems, and perishable goods stored within these buildings. This customized approach ensures that potential risks are adequately covered.

  2. Equipment Breakdown Protection: Flex recognizes the critical role of machinery and refrigeration systems in cold storage buildings. It includes robust equipment breakdown coverage to safeguard against the financial impact of mechanical failures, including the cost of repairs and replacement.

  3. Risk Mitigation Expertise: Flex combines insurance coverage with risk management specific to the agriculture sector. Our niche expertise can provide valuable guidance on implementing preventive measures, safety protocols, and risk mitigation strategies to minimize potential losses.

  4. Flexibility and Adaptability: As the agricultural industry evolves, Flex aims to remain flexible and adaptable to changing needs and regulations. This ensures that cold storage facilities can access the most up-to-date coverage options and risk management resources available.

Insuring cold storage buildings poses unique challenges due to their specialized requirements and risks. Agribusiness Risk Underwriters has risen to the occasion, tackling these challenges head-on with Flex.

Flex delivers the solutions and capacity agribusiness owners need. It goes beyond insurance coverage by providing valuable risk mitigation expertise. ARU's loss control protocols are designed to work collaboratively with policyholders to minimize the likelihood of losses. This proactive approach helps agribusinesses maintain the integrity of their perishable goods and reduces the potential for disruption in their operations. With Flex, agricultural businesses can safeguard their operations, minimize financial losses, and focus on what they do best—feeding the world.


Schedule a call with Underwriting Manager Jessica Todd to learn more about the coverages ARU offers and to see if your account qualifies for Flex!

**PLEASE NOTE THAT ARU MARKETS OUR PRODUCTS ONLY THROUGH LICENSED INSURANCE BROKERS. WE ARE NOT ABLE TO PROVIDE QUOTES OR INSURANCE GUIDANCE FOR FARM OWNERS**

Flex serves all 50 states with TIV limits up to $15M

Recently bound accounts served by Flex: Duck Hatchery, Potato Processing, Cold Storage, and Dairy

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