Companies can protect themselves against many recall-related losses through the procurement of adequate recall insurance coverage; yet, procuring the right recall insurance, can be a difficult process.
My wife just got back from a trip with the kids, and somewhere along the way the windshield caught a rock. No big deal; that’s why we have insurance. But that event got me thinking about what types of insurance a food production facility should carry.
Let's face it: Virtually all food manufacturers will have a recall. Over the course of the last decade, a handful of food companies have experienced many recalls, and some of the largest food product manufacturers in the world have experienced dozens.
While the risk of fire is high in a small meat plant, there are efficiencies that can be gained by asking your agent to do a few things that will allow you to maximize your coverage and ensure that your customers' products are covered at a fair price.
With the numbers of monthly recalls for pathogen contamination and undeclared allergens growing, more and more food processors are buying recall insurance to cover that potential threat.
If you think it is unlikely that your food products will someday be recalled, or that you’ll be covered by your insurance if it ever happens, think again.
