Product recalls are on the rise in many industries. As regulatory and consumer protection standards are getting tougher, product supply chains are becoming more complex. This increases the risk of errors, defects and contamination at all levels of operation. Too often, these problems do not manifest themselves until after a product hits the market. All of this can lead to staggering expenses for food and product manufacturers facing the risks and realities of product recalls.
An article titled “A Primer On Insurance Coverage for Food Contamination Losses”, written by Syed Ahmad and Matthew McLellan, was published in the April 2016 issue of Food Logistics Magazine. The article provides an overview of insurance protection for food contamination events confronted by companies in the food and beverage supply chain. The article describes the availability of coverage under standard-form policies as well as specialized coverage for food contamination events. Through illustrations based on recent high profile contamination events and product recalls, the article provides insight on the type of losses that may be covered, the necessary proof of loss, as well as some of the pitfalls and limitations on coverage that policyholders may face.