Co-Packer & Contract Manufacturing Insurance
A co-packer or contract food manufacturer needs its own product liability, recall, and commercial coverage — not reliance on the brand owner's policy. Because you produce food under another company's brand, liability is shared and governed by your supply contract, which almost always requires you to carry your own product liability and name the brand owner as additional insured. Relying on the brand owner's insurance is the gap that sinks co-packers when a claim hits.
Why co-packers carry shared liability
If a product you co-packed sickens a consumer or triggers a recall, the injured party (and the brand owner) will look to everyone in the chain, including the manufacturer who actually made it. Co-packers cannot assume the brand owner's policy protects them: those policies protect the brand owner, and often include indemnity or subrogation provisions that push liability back onto the manufacturer. The protection a co-packer relies on has to be its own.
What your supply contracts require
- Product liability limits — commonly $1M–$5M, sometimes higher for national brands.
- Additional insured status for the brand owner on your policy.
- Hold-harmless / indemnity obligations that shift defined risks to you.
- Waiver of subrogation in the brand owner's favor.
- Product recall coverage, including third-party recall when your product becomes an ingredient.
A certificate of insurance that doesn't match the contract's wording — not just its limits — can hold up production or breach the agreement.
What co-packers most often miss
If your co-packed component triggers the brand owner's recall, a basic recall policy limited to your own branded goods may not respond. Co-packers and contract manufacturers should confirm third-party recall is included, that additional-insured and waiver-of-subrogation endorsements match each customer contract, and that limits scale with their largest customer's requirement. These details are exactly what an independent broker reviewing the supply agreements catches before they become a coverage gap — see the related product recall & contamination guide and the full food manufacturing insurance guide.
Frequently asked questions
No. The brand owner's policy protects the brand owner, and supply contracts typically require the co-packer to carry its own product liability and name the brand owner as additional insured. Relying on someone else's policy leaves the manufacturer exposed and usually breaches the agreement.
Commonly $1M–$5M in product liability, with additional-insured status, hold-harmless/indemnity terms, waiver of subrogation, and often recall coverage. National brands may require higher limits. Match the certificate to each contract's exact wording, not just its limits.
Usually yes. If your co-packed product triggers a recall of the brand owner's finished goods, a recall policy limited to your own branded product may not respond. Third-party recall coverage closes that gap.
Make sure your co-pack contracts are actually covered
Send us your supply agreements and we'll confirm your product liability, additional-insured, and recall coverage match what each customer requires.