If you want to protect your food business from the financial damage of a lawsuit, food product liability insurance is essential. Food can easily spoil or become contaminated at many points through its life cycle. From being contaminated at the farm where it grows (as in recent e. coli outbreaks), to its storage, transportation, manufacture, and preparation there are multiple points of contact where a problem can occur.
Even when food safety and hygiene is a priority in the operations of your business, there is always a chance for an error that can expose you to a lawsuit. Even if you do everything right, you could receive a shipment of contaminated food and pass on that on to a consumer, in which case you may be liable, even if you did nothing wrong.
Common bacteria that cause foodborn illness are e. coli, listeria, mad cow disease, and salmonella. If the food is not refrigerated or processed properly, the end product can cause illness or even death to those who consume it.
Food labeling is also another serious issue that can lead to lawsuits if it is not done properly. Not only can the food company be sued for improper labeling or mislabeling, the organizations using those food products can be liable for lawsuits as well.
Many people suffer from food allergies, and can become seriously ill or even die if they eat the wrong thing. Common food allergies include: peanuts, tree nuts, shellfish, lactose, and wheat gluten. If food is not labeled properly, such as “processed in a plant that contains peanuts,” a lawsuit can ensue.
If a food manufacturer, farm, or restaurant causes a consumer to become ill, they can be sued and be held liable. The cost of legal defense is extremely high, and monetary rewards or settlements out of court can be astronomical. Food product liability insurance will cover costs of a lawsuit, and protect the financial well being of the company sued.
Invensure has experts on staff that can help you determine what amount of coverage you need. We have been serving Southern California for over 35 years, and have agents who work exclusively with restaurants, food manufacturers, and distributors.
Call today to learn more. (800) 331-4700