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Currently showing: Food security > Food industry

25 Jan 16 22:32

When an ice cream manufacturer issues a recall it’s not just a headache for ice cream lovers, it becomes everyone’s problem.

Blue Bell has had more than its share of challenges. First there was a nationwide listeria recall, and just recently it found additional areas where listeria may be present and is working to clean and sanitize those areas.

With increased scrutiny of Blue Bell and other companies, the timing of our first US liability Trend Spotlight for 2016 couldn’t be better. The risks of agricultural and consumer food product losses touch everyone—from manufacturers to suppliers to retailers to consumers to shareholders. Last April Blue Bell started re-shelving products, but the latest developments remind us of the prevalence of food recall concerns—especially under the Food Safety Modernization Act of 2011—and the need to identify relevant insurance considerations for claimed losses.

The new Blue Bell finding is a reminder that enhanced food safety procedures and modern environmental testing are critical underwriting considerations. Likewise, insurers need to consider the severity of these exposures since many have involved widespread illness and fatalities.

Our latest liability Trend Spotlight takes a look at possible coverages for these situations as well as how courts may review the question of the number of occurrences. What are your thoughts?

Category: Food security: Food industry


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