General liability coverage falls short amid globalized food chains
State regulators and even the CDC are increasingly challenged to pinpoint and resolve many of the causes that ignite foodborne illnesses. Globalization and mounting complexities in the food supply are fueling much of the problem.
What the CDC does know is that 90 percent of all foodborne illnesses stem from just seven pathogens: salmonella, norovirus, campylobacter, toxoplasma, E. coli, listeria and clostridium perfringens.
Still, in nearly half the reported cases officials can’t identify the source, and the blame game begins, often falling to the only known links in the food chain – regardless of how diligent those producers and handlers caught in the middle have been.
The U.S. court system is enabling this new culture of finger pointing, and it raises fresh concerns regarding issues such as indemnification, risk transfer and risk protection. The bottom line is that regardless of how safe your operations are, you’re still at risk and likely need new forms of protection.
Once a one-size-fits-all approach to risk management, general liability insurance has become the death knell of food-related companies facing increasingly complex liability issues. Businesses today must be equipped to address issues like wrongful allegations, tampering, contamination and even sabotage.
An effective risk expert can counsel businesses on ways to transfer risk, tighten indemnifications and prepare for unavoidable challenges like recalls that general liability policies can’t adequately address.