Confidence and trust in the integrity of your product or service is critical. It takes hard graft and passion to succeed in this sector. Reputation is difficult to build but easy to destroy. Critical to ongoing success are very high standards of health & safety, product quality through rigorous quality checks and supply chain continuity coupled with a strong media and brand presence. Key risks include:
Product failure, product recall and reputational damage
Business interruption via contractual dependency risk, product liability and manufacturing process failure
Supply chain failure at 1st and 2nd tier levels
There is no point spending money on insurance if it isn’t going to pay out when you most need it. If a loss occurs the financial impact can be devastating. That’s why speed of claims settlement and loss recovery support are absolutely critical.
Our service is geared towards protecting business reputation, balance sheet and cash flow. We do this by implementing a deep analysis of your production, supply chain and distribution systems combined with the general business risks such as manufacturing equipment, employee and IT risks.
We really get in deep to understand every potential risk.
This is our job. We question everything, we challenge long held ways and beliefs and we help you identify and understand where it can all go horribly wrong.
This means talking with you, sharing information, questioning your operating procedures and always watching your back. We keep in regular touch throughout the year to double check any new developments/changes in your business.
Reputational confidence is vital. It is extremely important that you have strong Business Continuity procedures in place to react quickly to a problem situation. This could be backed up with Product Recall insurance and Crisis Management insurance.
The knock on effect of primary or secondary supplier failure can very quickly hit your income and profit. It is critical that supply chains are properly considered and the knock on effect of a failure, including the potential for contract loss.
Food & Drink insurance policy cover varies dramatically depending on which insurer you use. You must ensure clarity between your own manufacturing process and those that may be outsourced. Death or Personal injury caused by faulty product is a serious risk. The average food & drink insurance policy contains some 30,000 words of legal jargon; this is about the same length as a small novel. This document is packed full of conditions, warranties and exclusions which may allow insurers to decline a claim.
Des Smith, Managing Director – Aspall
A young business that had created a new version of an existing product and designed a strong brand identity.
As with many young and ambitious businesses, their bank had encouraged use of the bank’s preferred insurance supplier via an online quote system.
Our client outsourced the manufacturing of their product to a third party and hadn’t considered the risks associated with that.
The problem our client had was that they didn’t really understand the risks the business faced and simply bought cover it thought was enough and suitably cheap.
The reality was that 24 months of product design and brand building was vulnerable to financial loss in the event of a product or reputational incident.
The insurance cover they spent money on was very poor in structure and depth of policy wording support. It was quite simply very poor and totally inadequate.
Rapid growth companies are focused on growing their business and can have a tendency to feel almost immortal, paying little attention to downside risk.
Our concern was that a large claim could disrupt cash flow and impact on company reputation at a time when the company was pushing on. Lost customers would take time to replace and therefore income protection had to be properly considered.
Our job was clear. restructure the insurance programme, dramatically reduce the warranties and remove gaps in the policy wording, in particular in respect of product failure and recall. The new programme we created significantly improved risk protection and included crisis management support, online health & safety advice.
Ambiguity in insurance policies almost always causes legal disputes and fast growth companies don’t want to be distracted by this.
Our current client count within this industry