Food Product Recall? Take a Hard Look at your Product Recall Insurance

Does your food processing business have the right food product recall insurance in place? Food borne illness claims right after a food product recall are among the greatest financial risks facing the food industry. Having the right insurance plan in place will help protect your food processing business.

Most food processors are already aware of the need for a product recall plan and food product recall insurance plan coverage. But many food businesses aren’t adequately covered.

Recent reports regarding drug resistant bacteria increase the impact tainted food can have on our population. Army scientists have reported finding E. coli bacteria that harbor a gene, called mcr-1, in a urine sample of a 49 year old Pennsylvania woman being treated for a urinary tract infection. This gene renders the antibiotic Colistin useless.

Colistin is considered the antibiotic of last resort for especially dangerous types of superbugs, including a family of bacteria known as CRE. In some instances, these superbugs kill up to 50% of infected patients. The Centers for Disease Control and Prevention considers CRE among the country’s most urgent public health risks.

On July 11, researchers confirmed preliminary findings that E. coli carrying the same mcr-1 gene were found in a stored bacterial sample of a New York patient who had been treated for an infection last year, as well as in patient samples from nine other countries. “You can be sure (mcr-1) is already in the guts of people throughout the United States and will continue to spread,” said Dr. Brad Spellberg, professor of medicine at the University of Southern California.

Looking for someone to review your product recall insurance plan? The team at KMRD has food processing insurance experience and understands the intricacies and potential risks facing food processors and their insurance requirements.

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