If a product proves to be defective, general Civil Liability policies cover damage to third parties that could be caused by this product, and its withdrawal, but not the cost associated with the product itself.
Product Recall is an innovative insurance solution that is intended to cover the unexpected economic consequences of a defective or faulty product: interruption of business operations with cover for lost profit and extra operational costs, crisis management assessment and consultancy, the cost of withdrawing the defective product, replacement costs and even the cost of restoring sales to their level prior to the incident.
The control of financial risks involves optimal credit management, which is why credit policies are essential in the sector.
In most cases sales are concentrated in a few customers, mainly distributors. The risk is therefore concentrated, and the financial risk needs to be transferred to an insurer.
The food sector accounts for 2.5% of national employment and Global Benefits cover is therefore vital, for contingencies such as health, life, accidents and flexible remuneration.
The identification and detailed assessment of the risks faced by companies in their day-to-day operations is increasingly important and needs to be treated as a key issue by companies in the food industry.
The assessment of risks faced by these companies should focus on those which do not stem from financial activities but which are still relevant for business continuity. The RibéSalat methodology guarantees the identification and measurement of risks and the development of made-to-measure mitigation and transfer plans, which can help to manage exposure to risk in line with corporate vision and strategic objectives.