Rising risks create ‘perfect storm’ for food producers
Published 31 May 2019
Rising risks in the food production industry have led to a “perfect storm” but producers can meet their challenges with sound risk management, Gallagher specialists say.
Rising claims costs and damage linked to expanded polystyrene (EPS) have created a “perfect storm” for the food production industry as they seek insurance cover, Gallagher specialists have said in an article in the latest Gallagher Market Overview Report.
Stephen Elms, National Head, Food Production and Greg Paddon, Client Manager, write that food producers need to work with their broker on sound risk management to find the right insurance cover.
“It is vital that food producers work alongside their brokers to strategise their approach to risk mitigation.
“As a producer, you will not be able to iron out all of your mitigation work in the short term, so we work on a stepped process to give insurers the documentation and peace of mind they need as they build a relationship with your business.”
The property insurance market for food producers is becoming more complex, Elms and Paddon say. Unless food producers, and their brokers, take action some businesses may be unable to find coverage for 100% of their risks.
“A specialised understanding of the insurance challenges facing food producers is becoming increasingly important. The market will continue to change and food producers need to ensure that they have the right advice on their mitigation strategies to receive the best outcome.”
Property market continues to change and will do for the next several years
Insurer scrutiny increasing on mitigation activities
Without action, food producers may struggle to have 100% of their risks covered
Working with broker to strategise long and short-term planning best key to success
See Sarah Lyons, Chief Executive – Australia, and Steve White, Head of Marketing & Communications, APAC, introduce the report here.
How to access our first half-year 2019 Market Overview Report
Access the full reporthere. This digital version also has a full PDF version available for download and printing.
Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient’s industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers’ control.
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