Higos Issues Insurance Advice For Food & Drink ManufacturersSunday 21st April 2013
The growth of the food and drink manufacturing industry is one of the success stories of recent years. Established names have continued to expand and the number of new entrants to the sector has been encouraging to see. At Higos we work closely with a number of food and drink manufacturers, providing tailored insurance solutions to meet the needs of businesses with this industry.
Food and drink manufacturing is a sector where rapid growth is not unusual – one contract can signal a huge increase in production. Whilst this is generally good news for the manufacturer, there are potential pitfalls associated with rapid growth which should not be ignored.
Insurance is often overlooked and left to the last minute. Our experience is that many companies only pay attention to their insurance once the premium starts to increase. However, in many cases – especially if the business has grown – your cover may have become inadequate and therefore unable to respond should the worst happen.
We recommend you review your insurance cover annually, ensuring your current policy remains suitable for your needs and provides the protection required for a food or drink industry manufacturer.
One of the areas where food and drink manufacturers can be vulnerable is business continuity. Whilst most food and drink manufacturers have an element of business interruption cover – providing protection against loss of profit and other business expenses as a result of a break in commercial activity caused by an insured event – our experience shows many companies do not pay enough attention to this section of their policy and are either insured on an incorrect basis or restricted by a short indemnity period.
There are options available to you under the business interruption section of your policy which, for example, provide you with cover for moving your operation to alternative premises, whilst your existing premises is repaired/
rebuilt, enabling you to continue with production. These options are not expensive but are often overlooked.
At Higos we always put the interests of our clients first. We like to develop long term relationships with our clients and strive to truly understand your business, so we can give you the best advice and ensure they remain properly protected. A standard insurance policy wording can be perfectly adequate for many industry sectors but certain covers may be excluded. Deterioration of stock, condemnation of undamaged stock and product recall are amongst many covers vital to the food and drink industry, included under a food and drink policy wording but often excluded from a standard policy.
If you are a food and drink manufacturer and would like to discuss your insurance arrangements with a broker with industry experience call us on 01749 834 500.