All companies operating within the foodstuff and beverage industry, whether multinational in scale or independent local growers or food and beverage processors, are under constant threat of severe financial loss due to product contamination.Infant Formula Recall Lawyer This informative article provides some practical information regarding the risks, the heightened regulatory involvement, how traditional insurance may apply, a quick peek on which to anticipate in case of a recall and choices for effective protection through the utilization of Product Contamination & Recall insurance.
A One-Week Food Recall Snapshot
A snapshot of the U.S. Federal Food Safety website over a recently available seven day span reveals food product recalls involving: Salmonella contaminated raw frozen fish, undeclared milk allergens in a Taco dinner product, Listeria contamination of pizza products, undeclared egg allergens in a sausage product, Listeria contamination of deli-sandwiches, mislabeling of a frozen pasta product, undeclared Sulfite allergens contained in a fruit preserve, undeclared peanut allergens in a almond snack, and of course, potential Salmonella contamination of fresh vegetable packaged salads. Most of these recalls affected independent private businesses and illustrate the vulnerability of most food and beverage businesses.
Every business owner has a different amount of understanding of a Business Owner's Insurance Policy ("BOP") which gives most smaller enterprises with two main forms of coverage: Commercial General Liability, Business Property, as well as a number of other ancillary coverage which range from Business Automobile to Data Privacy Breach coverage. Some BOP policies also contain limited Employment Practices Liability and limited Employee Dishonesty coverage.
Unfortunately, many independent companies operating in this industry are operating under the misconception that their basic commercial insurance coverage provides protection in case of something recall. Nothing might be further from the truth.