Whether manufacturing raw ingredients or serving food in a restaurant, the food and beverage industry faces many challenges when it comes to getting a product from ‘farm to fork’.
Traditional policies cover the hard costs involved in recalling a product or decontaminating a restaurant, however our markets take a holistic approach covering both tangible and intangible risks such as getting the brand back to its market position as quickly as possible.
Our markets have a long track record of insuring the whole supply chain from manufacture through to production, treatment, processing, packing, distribution, sale and consumption.
Product Recall: Our markets have established themselves as a market of choice for product recall insurance at Lloyd’s, offering a diverse range of cover including:
- Food and beverage for human consumption
- Domestic pet food
They also offer first party policies to get Insureds back on their feet and trading again as quickly as possible. Optional third party cover can be included when required.
Foodborne Illness: Standard product recall policies aren’t always appropriate for every type of insured. Restaurants and shops for example, where the business model is B to C, require a more immediate solution such as bespoke policies for Insureds providing indemnity for:
- Crisis management
- Decontamination expenses
- Other costs associated with getting a business trading again
Our markets’ policies are not solely for crisis management, each one also covers the reduction in revenue resulting from closure due to foodborne illness.
Reputational Damage: Every business trades on its reputation. In the case of the food and beverage industry – where the public is paramount – a good reputation is critical. Our markets offer policies that are designed to assist clients, whether a grocery store, a hotel or a restaurant, to deal with the effects of an adverse media event.
The period of time from an insured event occurring to the point that it is reported in the media is critical. They can assist with the public relations and media required to minimise the effects on business.
Every aspect of their insurance is tailor made ensuring each policy is designed to suit the specific needs of the organisation concerned.
Even the best hospitality entities can be trapped in infectious health or other media events which rapidly get out of control. Temporary closures can have a devastating effect on public perception of a brand, leading to peak season impact, loss of market share and ultimately devastating financial impact.
Negative publicity can be greatly magnified by the rise in social media, shifting the control of corporate communication from in-house to the consumer. The risk of negative media having a tangible effect on profits, or product demand, has never been greater.
Reputational harm insurance is designed to protect every conceivable type of hospitality company from hotels to theme parks to cinemas against the risk of adverse media affecting sales volume.
Lost sale volumes arising out of an adverse media event. The resulting reduction in revenue can be tailored to suit the specific demands of the industry concerned. A theatre will be more concerned with a loss of current and future ticket sales, whereas a hotel will be orientated more towards the loss of Revenue per Available Room, or RevPAR.
- Extra costs and expenses: PR, crisis management expenses and other costs to avoid a loss of sales volume.
Examples of Cover
- A fast food outlet operating at a sports venue was concerned that negative media could affect sales if it was derived from a foodborne illness, contamination, loss of customer data, negative health implications and hygiene concerns. Our markets have structured an insurance policy to indemnify the effect of the negative media on profits.
- A hotel complex was concerned with the death or permanent disablement of a guest while on a hotel premises. In addition they wanted to build into their policy elements of coverage for negative media resulting from Legionnaire’s Disease and other transmissable diseases. Our markets have structured an insurance policy to indemnify the effect of the negative media on profits.
Why we are different
- Most ‘reputational harm’ insurance products only cover public relations costs and expenses and prescribe the public relations firm that the insured must use.
- Our market’s approach is to insure loss of profits and includes naming those PR agencies that are familiar with the insured as crisis managers to further avoid the loss of profit.
- Our markets also consult with your clients and identify their key reputational risks i.e. those events that, if publicised could lead to a loss of reputation and create bespoke policies to capture such exposure.
24 to 48 hours for indicative pricing and options subject to receipt of a satisfactory application