Food and beverage futures
The risk landscape facing food, beverage and agriculture businesses is rapidly evolving. In property, there’s growing awareness of the hazards associated with some food and beverage facilities and activities, as well as the rising physical threats associated with climate change.
In casualty, new and emerging food-related health risks and supply chain issues are a cause of increasing concern.
As a result, property and casualty (P&C) insurers are restricting cover or increasing rates for some types of risk which they consider problematic. Firms may find it more challenging to get the insurance they need at an acceptable price.
Here are some major concerns insurers may have about the nature and quality of property and casualty risks in food and beverage.
Differentiate your risks through data: Property insurers often class all food and beverage businesses together, but the risks associated with different sub-sectors, business types and locations can vary hugely.
The more data and information you can present to differentiate and quantify your risks, the more likely you are to get better cover terms and prices.
Update your risk control measures: Review your procedures for managing key risks such as fire and flood. For example, make sure you have procedures for correcting or repairing damaged panels and that all combustible materials are kept well away from ignition sources.
Strengthen your food safety protocols: Consider using a third-party expert to audit your food safety practices and carry out supplier audits to make sure they comply with your requirements.
Other possible measures include using tracking technology to monitor and assure traceability in the supply chain by batch or lot number.
Update your valuations: After recent inflation spikes, property valuations in food and beverage may no longer reflect the cost of claims.
This can leave you underinsured and cause problems at renewal. Review your current values with an approved valuation firm.
Food, beverage and agriculture businesses can face barriers getting the property and casualty cover they need at an acceptable price, often because of insurer perceptions of their risks that are not justified in reality.
WTW can help firms understand and differentiate their risks and present them to insurance markets in a way that can help increase available cover while driving down prices wherever possible.
