Insuring the food supply chain

The food supply chain is the series of activities used to produce, process, distribute and consume food. Also, this highly complex and dynamic system is considered as one of the most essential services needed for human survival and development. Consequently, the food system accounts for 10% of the world gross domestic product (GDP). As the logistical complexity constantly evolves, the food supply chain is subject to many risks that can be categorized into economic, operational, geographic, and regulatory.

What can Food Insurance coverage do for your business?

Retailers, distributors, and warehouses are some key players of the food supply chain that can benefit from insurance coverage tailored to the business’ needs. For this sector, insurance can cover some risks like: 

• Business interruption
• Fraud 
• Contamination or loss of food products
• Product recall
• Property protection

As companies within the supply chain consolidate, adapting to changes in production, regulation, technologies, markets and market standards; the risks also change. This creates fresh opportunities for insurers to expand their current coverage and create new types of policies and services.

 

What can a Food Insurance cover?

In general, food insurance offerings can be similar to any other industries that need insurance coverage. For example, food retailers primarily look for insurance to cover their physical infrastructure, business interruption, liability, and product recall events. 

On the other hand, food distributors companies move food from the producer to the processor, and from the processor to retail outlets. Insurance opportunities in this sector will focus on infrastructure, liability, catastrophic events and security breaches. Changes in weather patterns may have specially important effects on transport whether by road, rail, air or sea. Furthermore, the integration of smart devices and surveillance throughout supply chains opens up new vulnerabilities and risks from cyber threats.

How much coverage do you need?

It might be challenging to predict just how much coverage your business might need. Still, you can estimate how much coverage may be necessary. The range and cost may vary depending on your location, how many employees you have, and if there are any potential risks for natural disasters in your area. Keep in mind that you can pay extra to cover other factors such as utilities services interruption, property operated by others whom your business depends on, extended suspension to comply with minimum standards of an ordinance or law, cyber risks and more. 

At Fulcro, we are fully committed to making insurance understandable, secure, and honest. As we recently merged with Luis Juarbe Seguros y Fianzas, we want to expand our services into the food industry to offer peace of mind for all your food business needs.

Protect your company from any setback with our coverages that adjust to your demands. Contact us for more information on how to get started.