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 report here. This digital version also has a full PDF version available for download and printing.