UNDERWRITING GUIDELINES FOR FOOD PRODUCTS MANUFACTURERS SEGMENT Local exceptions to these underwriting guidelines may apply. Please consult with your underwriter or sales executive for details and to discuss risks which exceed the following guidelines. Manufacturers Pac Plus SM risks will typically have: Up to $7.5 million Total Insured Values (Building and Business Personal Property) at each location and Up to $10 million Total Annual Sales. Underwriting Guidelines for Manufacturers Pac Plus Business Personal Property and General Liability coverage is required. If applicable and eligible, coverage is required for all owned buildings. One hundred percent insuranceto-value is required. Eligible operations are businesses specifically listed in the Classification section. Years in Business: Three years in business is preferred for all risks. Loss Experience: The business must have favorable loss experience for Property and General Liability. For each $10,000 in premium size, favorable loss experience can be generally defined as no more than two claims (Property and General Liability) and no loss greater than $10,000 in the last three years. Prior Carrier: The business should have had continuous insurance coverage for the last three years, with no cancellations by the insurer(s) or non-renewals (for other than market withdrawals or transfers within an insurer company group). Internet: Revenue generated by transactional Web sites must be less than 50 percent of the total revenues. Transactional Web sites are defined as Web sites that allow for the transfer of private consumer/ business information in exchange for goods/services or information. Web sites should have system security certification. Property Underwriting Guidelines: No cited violations of fire, health or life safety codes. Businesses should have adequate protective measures to detect fires and thefts. Central station fire alarms are required. Risks with sprinkler systems are preferred. MP T3 08- Protective Safeguards Endorsement must be attached describing the system. All owned buildings should be fully occupied, with no seasonal occupancies. Seasonal is defined as any occupancies open less than 8 months of the year. All tenants must meet underwriting requirements. Please see the appropriate underwriting guidelines based on the tenant occupancies. For both tenants and building owners, the plumbing, HVAC, wiring and roof should have been updated in the past 30 years. Goods susceptible to water damage should be palletized. Safety cans or fire-proof storage cabinets must be used for the storing and handling of flammable or combustible liquids. The combustible material storage area may not exceed 25 percent of the total area. Combustible materials must not exceed a height of 12 feet or must have the presence of 1
automatic in-rack sprinklers. Please consult with your underwriter regarding coverage for premises used solely for storage of inventory. Liability Underwriting Guidelines: Businesses should have a comprehensive quality control program. Please consult with your underwriter if armed security guards are present. Supplemental Application: Completion of the Food Manufacturers Supplemental Application is required. This application is available in Agent HQ SM /Reference Library/Worksheets and Applications. General Liability Rating: General Liability premiums are based on sales. Sales means the gross amount of money charged by the insured, the concessionaires of the insured or by others trading under the insured s name for: Goods or products sold or distributed, Operations performed including parts and labor, Commissions and fees for services provided, Rentals, and Dues and fees. Refer to CLM General Rules 24. D. for specific inclusions and exclusions. Sales are subject to annual premium audit. Coverages for Food Products Manufacturers The following applies to all Food Products Manufacturers: Values should be included for the following types of Business Personal Property: Machinery and Equipment (not permanently attached to the building), Stock raw, in process and finished, Furniture and Fixtures, Personal Property of Others, and Electronic Data Processing Equipment. Business Income and Extra Expense coverage is optional. When selected, the coverage may be written with a policy or location level dollar limit. The dollar limit is based on 50 percent of annual receipts and may be modified. MP T1 59 Amendatory Provisions Manufacturers Pac Plus is mandatory and includes the following: Brands and Labels coverage is granted for up to $25,000, Sales Representative s Samples and property at exhibitions are covered for up to $25,000, Business Personal Property Off Premises coverage is automatically provided, including while in transit (excluding stock in transit), Manufacturer s Consequential Loss is covered for up to $25,000, and Theft of Patterns, Molds and Dies is covered for up to $50,000. MP T1 62 Amendatory Provisions Manufacturers Pac Plus Including Business Income Ordinary Payroll Limitation is an optional replacement to MP T1 59, includes the same coverages, and contains a 90-day ordinary payroll limitation. CG T3 23 Exclusion-Aircraft Products and Grounding is mandatory. MP T1 60 Selling Price valuation on finished stock is available. CG D1 87 Manufacturers/Wholesalers XTEND Endorsement is available. CM T1 14 Transportation Special Form is available. 2
Classifications for Food Products Manufacturers The Exposure Group is based on the product(s) made and the likely manufacturing process used to make the product(s). To determine which Exposure Group to select in IENet SM, please see the following list of products and select the Exposure Group associated with the product that generates the majority of annual revenues. Classification Pac Plus Exposure Program Code Group Bakery, Candy and Confectionery Products Manufacturers 243 Low 244 Medium 245 High Dairy Products Manufacturers 246 Low 247 Medium 248 High Fruit, Vegetables and Processed Food Manufacturers 249 Low 250 Medium 251 High Description Pac Plus Eligible Exposure BAKERY, CANDY AND CONFECTIONERY Baking chocolate 243 2066 Low Biscuits 244 2045 Medium 2051 2052 Bread and bakery products 244 2051 Medium Breakfast bars 244 2064 Medium Breakfast food 244 2043 Medium Cakes 244 2045 Medium Candied fruit 245 2064 High Candy 245 2064 High 2066 Candy Bars 245 2064 High Candy covered nuts 245 2064 High Cereal 245 2053 High Cheese cake 245 2053 High Cocoa 243 2066 Low Cocoa bars 243 2066 Low Cocoa beans 243 2066 Low Confectionery sugar 244 2062 Medium Cookies 244 2052 Medium Cough drops, non-medicated 245 2064 High Crackers 244 2052 Medium 3
Description Pac Plus Eligible Exposure Dates 245 2064 High Dough 245 2045 High Flour mixes 245 2045 High Fudge 245 2064 High Granola bars 245 2064 High Marshmallows 244 2064 Medium Nuts 245 2064 High Pasta 244 2099 Medium Pies 245 2051 High 2053 Popcorn 245 2096 High 2099 Popcorn balls 245 2064 High Pretzels 244 2052 Medium Sweet yeast goods 244 2053 Medium Syrups: maple, chocolate 244 2066 Medium 2099 DAIRY PRODUCTS Butter 247 2021 Medium Buttermilk 247 2023 Medium Butter oil 246 2021 Low Butter powder 246 2021 Low Butterfat 246 2021 Low Cheese, cheese products 247 2022 Medium Cream 247 2023 Medium Cream substitutes 247 2023 Medium Custard 247 2024 Medium Dips, sour cream- or cheese-based 247 2022 Medium Dry milk products 246 2023 Low Fruit juice pops 247 2024 Medium Half-and-half 247 Medium Ice cream products 247 2023 Medium 2024 Ice milk products 247 2023 Medium 2024 Ices and sherbets 247 2024 Medium Lactose 246 2023 Low 4
Description Pac Plus Eligible Exposure Malted milk 247 2023 Medium Mayonnaise and mayonnaise- or milk-based products 248 2035 High Milk and milk-by-products 246 2023 Low Low Milkshake mix 246 2023 Low Parfait 247 2024 Medium Salad dressings (egg, milk, or mayonnaise-based) 248 2035 High Sandwich spread 247 2022 Medium Tofu 247 2024 Medium Whey 246 2022 Low 2023 Whipped topping 247 2023 Medium Yogurt 247 2023 Medium 2024 FRUITS, VEGETABLES AND PROCESSED FOODS Almond pastes 250 2099 Medium Baking powder 249 2099 Low Bean sprouts, canned 249 2032 Low Beans, baked 250 2032 Medium Bottled and canned soft drinks 250 2086 Medium Brining of fruits and vegetables 249 2035 Low Cake frosting mixes 249 2099 Low Candied fruits 251 2064 High Canned fruits or vegetables 250 2033 Medium Catsup 250 2033 Medium Cherries, brined 251 2035 High Cherries, maraschino 251 2033 High Chewing gum 250 2067 Medium Chicory root, dried 250 2099 Medium Chili con carne, canned 251 2032 High Chili pepper or powder 249 2099 Low Chili sauce, tomato 250 2033 Medium Chinese foods, with meat 251 2032 High Chinese noodles, not fried 250 2099 Medium Cider, non-alcoholic 251 2099 High Coconut, dried or shredded 249 2099 Low Coffee, roasted 250 2095 Medium Coleslaw in bulk 251 2099 High Cracker sandwiches 250 2099 Medium 5
Description Pac Plus Eligible Exposure Dates, dried 251 2034 High Dehydrated fruits, vegetables, and soups 249 2034 Low Desserts, ready 250 2099 Medium Dips, dry (except cheese- and sour cream-based) 249 2099 Low Emulsifiers, food (dry) 249 2099 Low Fillings canned, pie or cake 250 2099 Medium French toast, frozen 250 2038 Medium Frosting, prepared 250 2099 Medium Fruit butters 250 2033 Medium Fruit flour, meal and powders 250 2034 Medium Fruits, pickled and brined 249 2035 Low Fruits, quick frozen and coldpack (frozen) 249 2037 Low Fruits, sulphered 251 2034 High Gelatin dessert preparations 249 2099 Low Gravy mixes, dry 249 2099 Low Hominy, canned 250 2033 Medium Honey, strained and bottles 250 2099 Medium Horseradish, prepared 250 2035 Medium Ice, manufactured 250 2097 Medium Jellies, gelatin 250 2099 Medium Jellies, including imitation 250 2033 Medium Juices, fruit and vegetable (fresh, frozen, and canned) 250 2033 Medium 2037 Leavening compounds, prepared 249 2099 Low Macaroni and spaghetti 250 2098 Medium Meals, frozen (not fried) 251 2038 High Mexican foods, canned 251 2032 High Mincemeat, canned 251 2032 High Mushrooms, canned 251 2033 High Olives 251 2034 High 2035 Olives, canned 251 2033 High Onions, pickled 249 2035 Low Pasta dishes, meatless (canned and frozen) 250 2038 Medium 2032 Pasta dishes with meat and sauce (canned and frozen) 251 2038 High 2032 Pectin 249 2099 Low Pepper 249 2099 Low Pickles and pickle salting 249 2035 Low 6
Description Pac Plus Eligible Exposure Pizza 251 2099 High 2038 Potato flakes and granules 249 2034 Low Potatoes, peeled for the trade (excluding frozen french fry manufacturing) 249 2099 Low Prunes, dried 251 2034 High Raisins 249 2034 Low Sandwich spreads 251 2035 High Sauces, with meat 251 2035 High Sauces, with seafood 251 2035 High Sauces, without meat or seafood (such as barbecue, chili-cocktail, gravy, 250 2033 Medium other pasta, steak, spaghetti, sweet and sour) For sauces made with milk, egg or mayonnaise, use High for the Exposure Group Seasonings (prepared sauces), vegetable (except tomato and dry) 249 2033 Low Sorghum, including custom refining 249 2099 Low Spices, including meat seasoning 249 2099 Low Tea blending 249 2099 Low Vegetables peeled 249 2099 Low Vegetables pickled and brined 249 2035 Low Vegetables, quick frozen and cold pack (frozen) 249 2037 Low Vegetables, sulphered 251 2034 High Vinegar 249 2099 Low 7
Ineligible Operations, Products or Services for Food Manufacturers Risks with the following exposures, products and operations should not be written as Manufacturers Pac Plus accounts: INELIGIBLE OPERATIONS Agricultural or dairy farm operations Egg producers and hatcheries Migrant labor, or significant leased temporary labor Packing operations (fruits, vegetables, meats, etc ) Processing or packing of poultry or meat products Products directly imported or manufactured in foreign countries Primary manufacturing operations in frame buildings, and/or secondary manufacturing operations (storage and maintenance facilities) in unsprinklered frame buildings located in protection classes 8, 9, or 10 INELIGIBLE SIC CODES 201X Meat products (any SIC) 2044 Rice milling 2046 Wet corn milling 2047 Dog and cat food 2048 Prepared feeds, NOC 2061 Raw cane sugar 2063 Beet sugarneligible SIC CODES: 2068 Salted and roasted nuts and seeds 207X Fats and oils (any SIC) 2091 Canned and cured fish and seafoods INELIGIBLE PRODUCTS Alcoholic beverages Animal food or supplements 2092 Fresh or frozen prepared fish 21XX Tobacco products (any SIC) Baby food products (any) including formula Dietary supplements, products used in weight gaining or reduction, vitamin mineral supplements or health food supplements Medical or medical-related product regulated by the Food and Drug Administration Milk, final product contains un-pasteurized (raw) milk Molasses or sugar Pharmaceutical or medical products Ready-to-eat meals for hotels and other institutions The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford, CT 06183 travelers.com This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations. 2007 The Travelers Companies, Inc. All rights reserved. CP-55549 Rev. 05-07