According to estimates from the Centers for Disease Control and Prevention (CDC), 48 million people in the U.S. are made ill by foodborne diseases each year, and 3,000 die as a result. 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 global food chain are fueling much of the problem.
Most foodborne illnesses stem from salmonella, norovirus, Campylobacter, E. coli, listeria and clostridium perfringens. In many reported cases, however, officials can’t identify the source of the pathogens. Then 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.
This culture of finger pointing raises 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.
The above information does not constitute advice. Always contact your insurance broker or trusted adviser for insurance-related questions.