With over 40 years of experience in building sound risk programs for food processors, bottlers and agribusinesses
Due to the unique exposure characteristics in these industries, crafting a comprehensive risk program can be a daunting task, even for the most seasoned insurance professional. Since securing the correct protection is more than just taking a policy off the shelf, your risk partner needs to understand your industry’s inherent hazards, along with the regulatory and HAACP compliance requirements.
Some of the operations that fall within these industry segments:
Commercial growers and packers of agricultural products
Dairy products manufacturers
Food processors and distributors
Food related service companies
Grain and field crop growers
Livestock auction barns
Produce growers & distributors
Restaurants & other related businesses
Vineyards, wineries or breweries
Many distributors have the misconception that their General Liability coverage will respond to the costs of a contamination and recall event, because their broker told them so! There cannot be anything further from the truth. General Liability policies, if endorsed with Products Liability coverage, will respond to claims where the food product caused Bodily Injury to someone, such as food poisoning or even worse, death. So, while many think Products Liability coverage will be a remedy for any type of a “product” related claim, it will provide no benefit to a contamination and subsequent recall expenses. Before getting into specifics regarding coverages afforded under a contamination and recall policy,
The standard big box grocery store chains were the first to come out with supply contracts associated with our food chain. While these standard agreements can run to well in excess of 30-40 pages, the supplier needs to focus on three specific sections of these contracts: Product Recall, Indemnification and Insurance. A standard big box store Product Recall policy wording reads as follows:
What is the true cost of a recall other than cash flow?
Relationships! Recalls either severely strain the bonds or terminate relationships. And, they always destroy customers’ trust. Recalls hurt all relationships, long or short-term. Today, contracts have replaced handshakes and supply chain contracts specifically outline rights and duties when a recall strikes: liability for all losses, damages, costs, expenses and lost profits. Moreover, a recall is catastrophic when lost relationships terminate a business. However, you can reduce the impact of recalls and save strained relationships. Ask us how. Protect the brand and balance sheet.
PRE-LOSS – UNDERWRITING & PREVENTION
POST-LOSS – Claims Advocacy
We assist policyholders with domestic and international insurance coverage issues while maintaining a special focus on crisis management. These issues involve contamination and product recalls, reputational risk, trade, and supply chain disruptions, cyber and data breaches, political risk, kidnap and extortion, and other emerging issues. We partner with our clients when they secure insurance coverage through a Lloyds Contamination Program.