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:
Agricultural co-ops
Bottling companies
Citrus growers
Commercial growers and packers of agricultural products
Cotton growers
Dairy products manufacturers
Egg producers
Feed mills
Fertilizer dealers
Food processors and distributors
Food related service companies
Grain elevators
Grain and field crop growers
Livestock auction barns
Meat packers
Nut distribution
Produce growers & distributors
Restaurants & other related businesses
Seed dealers/distributor’s
Vineyards, wineries or breweries
Wholesale nurseries
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.
Food Practice Group
The following includes an overview of our team’s internal functions, including our strategic partners, who help our clients reduce their contamination claim risks and associated costs. The two major sections are Pre-Loss Prevention and Post-Loss.
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.
Crisis Management Team
In the event of a Product Recall incident or other emerging crisis, a prompt and decisive response is vital in mitigating the consequences of such an event. When Contamination and Recall/Withdraw coverage is secured through us, our team’s work is supplemented by a Crisis Response Management center that is open 24/7, with teams of experts ready to help with a contamination crisis, whenever one occurs. These experts can assist in resolving or reducing the effects of an incident with the least possible impact on a company’s operation and or reputation and will help get the company back up and running as soon as possible.
Given equal or fewer premium costs, it would be well worth your time and the survival of your company to meet with us for an evaluation of where your company stands relative to others in your industry.