Congress has passed a new food safety legislation which gives the federal government mandatory food recall authority. The American Frozen Food Institute anticipated this development last year and partnered with Lockton Companies, LLC and XL Insurance to offer product contamination and recall insurance to AFFI member companies.
AFFI’s product contamination and recall insurance introduced a unique policy in the marketplace, which includes coverage for Class I and Class II mandatory and “encouraged” product recalls, even without direct evidence of product contamination. This value added program is being made available at a special rate only to AFFI members.
The frequency of food recalls seems to be on the rise along with efforts to hold food processors and manufacturers responsible for food borne illness incidents. This, coupled with more aggressive food regulatory agencies and the mandatory food recall authority granted by the new food safety law, is likely to increase your company’s exposure to risk.
For many companies, acquiring adequate insurance coverage to protect themselves against the financial costs of a food recall is prohibitively expensive. A survey of currently offered individual policies suggests that many are insufficient. Relative to their cost, they fail to effectively protect frozen food companies against the potential risk of financial and reputational ruin that could result from a significant food recall.
Why put your company at risk? Your current insurance program may not offer the protection you need, especially following the adoption of the new food safety law. Don’t leave your business exposed, apply today.
More than 3,800 professionals at Lockton serve more than 15,000 clients with risk management, insurance, employee benefits and surety solutions. Lockton is one of the leading experts on product recall and product contamination protection, working with dozens of food processors around the world. Lockton is the world’s largest privately held insurance broker, and is the 10th largest broker in the world. Lockton operates around the world and is headquartered in Kansas City, Missouri.