An industry at the forefront: insurance management for the food industry
The food industry operates under constant monitoring by legal institutions and the public. What we eat and drink is associated with strong emotions unlike hardly any other area of our day-to-day life and it is especially topics of food safety (‘food scandals’) that received a large amount of attention in the media.
The perception of consumers is increasingly shaped by an abstract feeling of risk, which is conveyed through negative messages in online and print media. For this reason the food processing and production industry is confronted not only with risks from product recalls and damage to image but also with risks involving damage to reputation by third parties, which is difficult to manage, and the associated financial consequences.
Funk combines expert knowledge of the international insurance market with up-to-date knowledge of legislation and the developments in the food industry. We reliably assess your specific insurance requirements and recommend risk solutions that are tailored to its needs in order to make the potential risks of your company manageable.
Well protected against liability claims due to product contamination
Contaminated products are a typical risk in the catering and food industry. Contamination can occur during production or processing, delivery or – as a special risk for food retail – inadvertently by third parties. Liability claims arising from contaminated or spoilt food and drinks can have severe financial consequences for the affected company because in addition to product recalls and demands for compensation after personal injury, manufacturers and traders usually also have to fight long-term damage to their image. As part of a comprehensive assessment of your insurance requirements, we analyse your risks in terms of product contamination as well. If necessary we implement appropriate special clauses, such as extended insurance cover that provides protection even in cases where the product in question is proven to be unsuitable for human consumption.
High innovation and competitive pressure presents risks for the food industry
The food processing and production industry is shaped by fierce competition. The consequences are high-priced pressure with the trend towards global procurement chains and an effort towards product innovations to set companies apart from their competition. Food producers, breweries and distilleries, restaurants and drink manufacturers have to overcome typical industry-specific risks in addition to ‘conventional’ risks like business interruption, transport damage or product recalls, with such typical risks as:
- Product liability
- Product protection
- Technical systems (fryers, thermal fluids systems, refrigeration systems, etc.)
- Interruptions in the refrigeration chain during transport
- Loss of earnings due to weather, pests, illness
The insurance market offers a limited number of insurers and hardly any innovations in this area – which is why we, as the largest family-run, independent insurance broker in Germany commit ourselves even more to working with our clients in the food industry to devise and implement risk solutions that are as individual as possible. This is also part of the Food Industry council initiative.