A tougher insurance market for food and beverage

A tougher insurance market for food and beverage

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A tougher insurance market for food and beverage

Hard insurance market conditions continue to make access to risk and insurance solutions more challenging. Partnering with an industry expert can help you navigate the complexities to achieve effective insurance renewal outcomes.

With the current hard insurance market cycle, food and beverage producers are facing a reduction in available insurer market capacity and an increase in premiums, particularly for property risks.

As you approach renewal time, businesses need to provide more detail and be prepared for insurers to examine every aspect of their business. Insurers are requiring all food producers to undertake independent risk surveys to identify assets and exposures such as cool room construction, fire protection and vulnerabilities in processes and systems. They will also generally require risk engineering improvements and demand regular communication on agreed actions.

For those who are unable to provide all the requested information, insurers may

  • not provide a quote for a new policy, or renewing an existing policy.
  • impose increased limits on their risks in the form of capacity and deductibles.
  • charge a higher premium than they otherwise would if they had all the information to underwrite the risk.

In the current insurance market you can’t rely on the insurance market to cover 100% of your exposures and you will need to have more capital expenditure in reserve to support major investments in risk mitigation or to meet higher deductibles.

The repercussions of property damage such as a fire can be far reaching. While insurance can protect against the cost of rebuilding and pays fixed costs, including payroll, during down time, the ongoing financial and personal impact on businesses, staff and communities can be far reaching.  If your business has hard to place risks, such as EPS, you must be prepared to demonstrate strong property safety and risk controls.  With a tougher insurance market for food and beverage our role is to advise and assist clients on their risk management systems, how to structure viable risk retention and transfer solutions and represent them to the global insurance market securing the most favourable outcomes for their ongoing success.

Gavan Duffy | Managing Director, HDL

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Contact HDL for further information.

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact HDL

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