Food product liability insurance is one insurance policy, which food product producers and manufacturers should consider. It protects you on the occasion that the food product covered injures the consumer.
Many business entrepreneurs believe they do not require an insurance policy until their enterprise is up and running. In reality, some people never think about insurance till somebody they wish to do business with necessitates it, a calamity happens, or they are involved in litigation.
Regardless of whether it is a missed business opportunity, a catastrophe, or litigation, all these scenarios are dreadful things, which no one wishes upon themselves. However, on the brighter side, you can readily avoid them by purchasing food product liability insurance.
What Does Food Product Liability Insurance Cover?
The following coverages are included in a food product liability insurance policy:
- Contamination by chance
It protects the policyholder’s products from unintentional or accidental contamination or mislabeling during preparation, manufacture, delivery, or packaging.
Nevertheless, in this case, coverage would be provided if the contamination caused bodily harm, disease, sickness, or wrongful death to a person in 120 days of consuming the food product.
- Malicious tampering
The product liability insurance provider will cover any genuine, accidental, or wrongful manipulation or infiltration of the policyholder’s product that renders it unsuitable for consumption. The insurance provider will also provide coverage if the deliberate interference has given the market the perception that perhaps your product is unfit for consumption.
- Extortion of Products
If the policyholder gets any risk, or a linked sequence of threats, of conducting intentional interference with the product to extort money from them, the insurance coverage will be provided. In this case, the insurance plan covers consultant fees, recall expenses, and sometimes blackmail expenditures.
While product liability insurance plans serve an essential role in protecting food from contamination and deterioration, some situations are not protected by the policy, such as:
- Any unlawful conduct that is committed by the executives, trustees, or directors of the policyholder
- Customer preference shifts, seasonal sales fluctuations, and a competitive market
- Contamination caused by conflict, terrorism, or natural disasters
Please keep in mind that this is not an extensive list of exclusions. Thus, you must closely examine your policy document to obtain the full information.
Perishable food and beverages are your “bread and butter” if you own a grocery store, restaurant, or wholesale food business. If a government body closes your establishment because of defective or contaminated food, you will incur significant costs. It will not only result in money loss, but it will also have a negative influence on your business and reputation. As a result, you must purchase food product liability insurance, which can provide a wide range of coverage to ensure your total protection.
Contact Karnas Law Firm
The skilled and experienced attorneys at Karnas Law Firm are well-versed in matters regarding food product liability insurance.
If you require assistance in understanding your policy specs or want to pursue a product liability claim against a negligent restaurant, wholesale, or grocery store, consult with an expert Car Accident Attorney. To get started, call their office or schedule a consultation online today.
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