Why Food Contamination Insurance is Necessary

One out of every six Americans will get food poisoning each year, leading to 128,000 hospitalizations as well as many recalls and lawsuits. This means that food contamination is a serious threat to many businesses. Food growers, processors, distributors, and even restaurants can all face significant losses due to accidental contamination or malicious tampering, but there are ways to mitigate these risks. Food contamination insurance keeps food businesses protected.

 

Specialized Coverage

 

Because the definition of “property” varies, some food contamination claims might be covered under general liability or business property insurance—but that only works when the definition happens to vary in your favor. In most cases, losses due to spoiled food can only be covered with a specialized food contamination policy.

 

Types of Insurance

 

There are different types of food contamination coverage; policies specifically for food spoilage can protect you from losses due to a damaged inventory. In addition, food recall insurance might be a good idea for manufacturers, since a recall can seriously hurt a company. It’s important to find a custom policy that fits your business well.

 

Risk Management

 

Risk management is one of the best courses of action for food companies. It helps to prevent problems from occurring in the first place, protects consumers, and keeps a business running smoothly.  You can protect yourself by seeking professional advice on issues such as vendor agreements, risk transfer, and food safety. Combining risk management with a quality food contamination insurance policy ensures that your business will be as safe as possible.