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recalls,and other risks with tailored insurance,

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Product recalls are a huge risk for food manufacturers

Insurance can help you deal with loss of earnings and any liabilities

Get independent advice and access to a wide range of providers by using a broker

First Commercial Insurance Brokers works with clients across New Zealand

Protect your products and your reputation with specialist insurance for NZ-based food manufacturing companies

Food manufacturing can be a complex industry with many risks to consider and protect your business from.
As an established insurance broker, First Commercial Insurance Brokers has access to a wide range of providers and can advise you on the best policies for your needs. We will work closely with you to analyse your most likely risks and then recommend a range of appropriate policies for you. Should you need to make a claim, we can also assist you with the required paperwork.
To arrange a consultation to discuss insurance for your business, please get in touch.

Contaminated products and recalls are a large liability for food manufacturers

In food manufacturing two of the most common risks are food contamination and product recalls. Food safety is a huge priority for any manufacturer but from time to time issues do arise. This may be due to: 

  • accidental contamination with chemicals or foreign objects during manufacture
  • an allergen risk being present in the ingredients
  • mislabelling, including not properly declaring allergens
  • deliberate contamination

Product recalls pose a significant to any food manufacturer, potentially costing not only reputation and public goodwill but also money. Every food manufacturer must have a clear recall plan in place and adequate insurance. Insurance in case of contaminated products or recalls can cover your business for:

  • the cost of removing stock from the shelves and from supply chains at any stage
  • lost profits from sales which cannot be made
  • decontamination of plant or machinery
  • manufacturing delays caused by checks or cleaning requirements
  • damage to brand reputation which may impact on future profits
These issues are not always covered by more general insurance policies and a specific recall and contaminated products liability insurance policy should be considered.

Products & Services

Other risks to consider

If you run a business, there are liabilities to be protected against. Risks you might need to cover include:

Public Liability

This covers your business against damage to another person’s property or injury to a third person. Product Liability cover is vital for those supplying food and drink to wholesalers, distributors, retail and end users (consumers). You have to deliver food and drink through a secure supply chain whilst maintaining public safety through environmentally friendly processes. No matter how careful and diligent you are, sometimes a mistake can be made. If this mistake causes illness or injury, you will be liable as the producer and your product liability will cover the costs.

Statutory Liability (Breach of a Government Act)

This occurs if your business or employees accidentally breach a Statutory Act of Government, for example breaching the Privacy Act or the Resource Management Act.

Employers Liability (Workplace Injury)

This covers your business should an injury occur to one of your employees. This is particularly useful for injuries that may not be covered by ACC.

Employment Disputes Liability

This protects your business against legal costs and any awards made in a personal grievance case.

Employers Liability (Workplace Injury)

Most asset policies will exclude theft or fraud by staff. Cover is available to protect against theft and fraud by staff even extending to third party deception (eg credit card fraud).
Other risks to consider for food manufacturing companies include :

Business Interruption (Loss of Profits and/or Increased Operating Expenses) Why is business interruption insurance important?

A loss to your business assets will generally have an impact on the company’s profitability. This will generally occur through a reduction in turnover and/or an increase in operating expenses needed to keep the business operating. These important losses and expenses are insurable and are often the key to business survival.

Loss of key people

Covering loss of people who are critical to running the business, either through illness, injury or death

Damage to assets

Covering damage to assets such as manufacturing equipment, electronic equipment or vehicles.

Fire risk

Covering fire risk both at your manufacturing plant, while in storage and during transportation – especially if you are storing or transporting chilled products in places that use expanded polystyrene (EPS) panelling.

Cyber threats

Cyber threats are becoming an increasing threat to all kinds of industries. If you manufacture on a large scale or have an internet presence you may be susceptible to an attack. This might include a ransomware attack where money is demanded for restoring your systems or an attack on your online credibility.
First Commercial Insurance Brokers can help you assess the likelihood of these risks in your business and the appropriate insurance cover. Contact us to arrange your consultation

Food Manufacturing FAQs

What is Food and Beverage Insurance?
Food and Beverage Insurance is a specialised insurance policy designed to protect businesses in the food and beverage industry from various risks.

What does Food and Beverage Insurance typically cover?
Food and Beverage Insurance typically covers product liability, general liability, property damage, equipment breakdown, and business interruption.

Do I need Food and Beverage Insurance if I already have Liability Insurance?
Yes. Liability Insurance may not be enough to cover all the risks faced by food and beverage businesses. Food and Beverage Insurance provides additional coverage specific to the industry.

What factors affect the cost of Food and Beverage Insurance?
The cost of Food and Beverage Insurance is affected by factors such as the size of the business, the industry it operates in, the location, the number of employees, and the coverage limits required.

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