food business needs a lot of work and planning that includes fresh ingredients,
the required processing plant with the right machines and equipment and of
course a dedicated hardworking workforce. However, such intense preparations
don’t make a company immune to setbacks that may come inform of lawsuits,
accidents, natural calamities or even a disgruntled workforce.
Therefore, for a
business to succeed and enjoy longevity, there are certain risks in the food
industry that should be managed carefully:
1. Supply-Chain Risk
Suppliers are a
core factor in the food industry. These are the people that bring in the fresh
produce and other necessary chemicals required in the processing plant. A loss
of a supplier due to transportation or price issues and adverse weather or even
low quality products can lead to a huge loss which trickles down to clients.
Make sure to have a plan b like business interruption insurance cover in place
to shoulder such a loss.
2. Equipment Risk
processing plants have automated equipment that are susceptible tomechanical
glitches that come with the territory caused by power surges etc. which can
cause immense damage to the production process. Equipment breakdown insurance
is what will save you from such damages that can be denting to your bottom
line; business interruption insurance cover takes care of the income loss part
caused by such a breakdown.
3. Food Safety and Recall Risk
illnesses are food related which end up in deaths in worst case scenarios or hospitalization
for days on end. Food poisoning from contaminated food can cause widespread
catastrophes which results in lawsuits and compensation with both being very
costly. Therefore, a coverage that covers such a risk should be in place which
should not only cover the lawsuit and compensation but also the cost that comes
with withdrawing such food from the market.
4. Contamination and Spoilage Risk
This can be
caused by machine failure, power failure, or using the wrong ingredient and
many more. Spoilage coverage is necessary to cover such instances that are
usually beyond your control.
5. Cyber Disruption Protection
becoming increasingly common it is a risk that can be disruptive and damaging
as most machines are automated. A food industry might be targeted to obtain
important information from files stored in their network. They should therefore
get an insurance cover for cyber liability to take care of such attacks that
can be inform of hacks or a virus that are hard to predict.
About Adamant Valves.
Founded in 2002, Adamant
Valves, as a global sanitary valves manufacturer and valves supplier, has grown
to become one of the leading valves manufacturers for high precision
stainless , sanitary ball
valves, pumps and pipe fittings. Adamant Valves uses advanced numerical control
machine tools, processing and testing facilities to ensure that our products
will meet your expectations for reliable performance and quality.