Whether manufacturing ingredients or creating a finished product, businesses in the food and drink sector rely on building trust and confidence. So they need robust food and drink insurance to protect what they’ve worked hard to achieve.
It takes time and expertise to build a good reputation. Unfortunately, it only takes one mistake and a very short space of time to destroy that reputation.
At Creative Risk Solutions, we understand the needs of businesses in the food and drink sector. We also recognise that there are new and emerging risks developing all of the time in this competitive, complex and safety-conscious industry.
How does food and drink insurance differ from normal product liability insurance?
Food and drink companies not only need to deal with both supplier and consumer needs but also comply with legislation covering everything from manufacturing and labelling to packaging and advertising.
This means that they need insurance cover that recognises their specific requirements. Due to the complexities involved in each stage of production, arranging it requires a great deal of experience and expertise.
So the question is, do you have the right covers in place should something go wrong?
What does food and drink insurance cover?
Food and drink products often have longer, more complex supply chains and production processes. This opens your business up to very specific risks.
For this reason, you need to ensure that the right protection is in place. This can include;
- Product liability
- Product recall
- Employers liability
- Public liability
- Supply chain risk management
- Material damage – Building, contents and stock
- Business interruption
- Cyber threats
- Health and safety
- Specialist machinery cover including machinery breakdown
- Goods in transit
- Reputational damage
- Credit insurance
Breakdowns and transport issues
With an often complex production process, issues can occur at any stage. Engineering breakdowns and the mechanical failure of machinery will undoubtedly have a knock-on effect.
The correct cover can help to offset business interruption, the loss of profits and the potential loss of clients. This can be invaluable for smaller businesses who are more vulnerable when waiting for replacement parts, especially when they are supplying larger organisations like supermarkets.
In the same way, should the quality of goods in transit become affected by late delivery, a problem with your vehicles or the loss of refrigeration, your policy can reflect this.
Product recall and contamination
Unfortunately, once the product is out there, the risks don’t go away.
With high-profile examples like the 2013 horse meat scandal, quality control in the food and drink industry is tighter now than ever.
Contamination of any kind will typically result in any number of potential losses. This could include compensation to customers, loss of profits, disposal costs, investigation costs, cleaning costs, damage to reputation, and recall costs.
We understand that every business is different and we work with specialist providers to deliver a tailored solution to respond to your needs.
If you have any questions, our specialist food and drink insurance team will be happy to arrange a complimentary review of your current policy.
Our areas of expertise include: