By David Duvall
Western Growers Insurance Services
When people think about the term “recall,” they tend to visualize an automobile manufacturer alerting customers that there is a problem with their car model and offering to fix the issue for free. That’s not the case in agriculture, and a “one size fits all” insurance model will not help agribusinesses efficiently manage all risks related to a recall.
In the agriculture and food industry, a recall is typically referring to a food contamination event where a foreign element (e.g., bacteria that can cause salmonella or listeria) has been introduced to a product and subsequently infects the process chain. If a company experiences this type of event, it could be catastrophic to their finances and reputation as a brand. They need a solution that is tailored and can guide agribusinesses through managing a recall-related event, mitigating exposure and preventing future recalls. That’s where the newly-launched Western Growers Shield™ comes in.
The Shield is Western Growers Insurance Services’ (WGIS) latest resource in loss control and claims management. Unlike other insurance brokerages, WGIS specializes in agribusiness and food clients. We know exactly what the industry’s needs are when it comes to loss control. We understand that each recall event has a different fingerprint, and solutions must be developed based on the exact circumstances of that specific outbreak. For example, it could be as simple as first-party business losses where only the insured is affected. Or, the contamination event can be so complex that the insured can also be responsible for third-party losses or involved in some type of product refusal in the marketplace.
By putting together the appropriate components available in the Shield, we are able to assemble a complete and ideal solution. We offer consultation to discuss your specific business needs and risks. Based on our conversations with each company, we build an insurance solution that is fully customizable and tailored to your organization. There are multiple building blocks available in the Shield:
• General Liability: Specific coverage for damage or injury to others caused by products and operations (i.e., someone gets ill from eating product.)
• Property: Insurance program where client receive continuous and unbroken coverage for damage to the products, including shipments to and from all points on the globe.
• Product Recall and Loss of Market (Contaminated Products Program): A recall and contamination coverage program that helps manages all risks related to a recall. WGIS walks businesses through the steps of recognizing which costs are associated with a recall, managing economic risk and planning for financial losses.
• Workers’ Compensation: A high-level solutions program that provides workers’ comp policy coverage from A-rated carriers and specializes in loss prevention and claim cost mitigation services to ensure members have the right risk management strategy in place. The program helps minimize claims, reduce premiums and lower the costs associated with workers’ comp.
The individual types of coverage under Western Growers Shield™ fit together like a puzzle to create the right fit for each individual agribusiness. To take the next step in shielding your company from the vulnerabilities inherent in product recalls, call us at 800.333.4WGA.
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