Coverage Options Unique to the Food Industry
How did your food-based business make out in the aftermath of Hurricane Sandy? Did your business have adequate coverage?
Spoilage Coverage protects perishable property and stock damaged by a change in temperature or humidity resulting from a power failure or equipment failure. This protection is not included in a business’s personal property/contents limit. It can also be extended to cover damages caused by contamination.
General Liability Insurance is especially important in the food industry due to the frequency of slip and fall lawsuits. It protects against accidents and injuries on company and customer property. It also protects against product liabilities.
Cyber-liability insurance covers the costs of theft, destruction, or unauthorized use of electronic data through computer viruses or network intrusions. It also protects against such costs if a business fails to safeguard another party’s electronic data (e.g. credit card information).
Improvements and Betterments
An improvement and betterment is anything installed by tenants that cannot be taken with them when they leave, such as light fixtures, shelving, refrigeration equipment, wallpaper, floor coverings, and interior walls. It is a very common and frequently overlooked exposure that has important implications for both the building owner and tenant.
Product Liability coverage is important for those that are manufacturing a product of any sort. It protects against the cost of judgments, settlements and legal fees arising from damages or alleged damages caused by a faulty or defective product. Goods with a high potential for injury include: food, automotive, medicines and medical devices, cosmetics and children’s toys.
Product Recall liability coverage is important for those that are manufacturing and distributing a product. It protects against loss of income because of a recall. For example, you make a chocolate peanut butter brownie and sell 250 units on QVC. The next day there is an ecoli scare in peanut butter across the USA and need to accept returns for all of the brownies you sold on QVC. This coverage will reimburse you for the loss of income and product you had to dispose of due to the recall.