Crisis Management Product profile and proposal form. Insurance cover for the food & beverage industry

Transcription

1 Crisis Management Product profile and proposal form Insurance cover for the

2 Liberty s Food & Beverage Insurance Policy is a recall cover specifically tailored for the food and beverage industry. Designed to address both product recalls and withdrawals, it protects manufacturers from the risk of contamination and also the need to withdraw their product due to a manufacturing error or quality control issue. In the past food and beverage manufacturers have relied on Contaminated Product policies, which only offer protection in the event of an incident that could cause bodily harm to a consumer. However food and beverage production is a fine art and sometimes problems on the manufacturing line can leave a product safe, but tasting different or unfit for consumption. Liberty s Food and Beverage cover offers a holistic industry solution. It s a Contaminated Product policy combined with a Product Withdrawal cover. What s covered? We ve worked with food and beverage producers for many years and have rolled the most commonly required covers into one convenient industry policy: Automatic inclusion of Product Withdrawal cover Triggers are closely aligned to the legal requirements to recall under the Australian Consumer Law, and the Australian Foods Codes A nil Self Insured Retention is automatically applied Option to add endorsements for Business Interruption and Rehabilitation Expenses Cover for Replacement Costs once the product has left the client s possession Replacement Costs while their product is still at a client s facility can be added as an endorsement if required What is a Product Withdrawal? Product Withdrawals are caused by quality related factors. They are recalls that have no potential for bodily injury and therefore are not covered by typical Product Recall or Contaminated Product policies. Examples include a cake with a missing ingredient, or a manufacturing error such as incorrect baking temperature affecting the look or taste of a product. It might be a product labelled with the wrong weight, or a drink that was meant to be fizzy turning out to be flat. They are often factors that could impact the reputation of a product if it were sold to consumers, but they wouldn t cause injury or harm. While not dangerous, they can be very expensive and if not handled correctly can deter customers and cause long term brand damage. It is not unusual to have retailers seek in excess of $100,000 from manufacturers for product withdrawals. 2

3 Compare the covers Here s a quick summary of how your food and beverage clients can enjoy extra protection: Incident Liberty Food & Beverage Policy Traditional Contaminated Products Policy Contamination by listeria, e-coli, salmonella or other food pathogens Yes Yes Glass, metal or plastic contamination Yes Yes Taste/inedible product due to manufacturing error Yes No Product unfit for consumption due to manufacturing error, with no bodily injury Yes No CASE STUDY yoghurt withdrawal A faulty lid An experienced yoghurt manufacturer received a phone call from a retailer that stocked their product advising that the yoghurt had a faulty lid that wasn t closing correctly. There was no likelihood of any consumers becoming ill, but the retailer chose to withdraw the product from their shelves. The yoghurt manufacturer was charged for the associated costs of the withdrawal. Typical magnitude of this type of incident: 2000 units affected Retailers withdrawal cost $141,000 CASE STUDY spring roll recall An undeclared allergen A Liberty insured was a distributor of spring rolls manufactured in China. During the production process vegetable oil was substituted with peanut oil. Our client was not made aware of the substitution and the product label did not include peanut oil, a known allergen. The product was consumed by a person with a peanut allergy who subsequently suffered an allergic reaction. Liberty s Crisis Management consultants assisted our insured in determining the cause of the suspected contamination. The product was recalled from sale as it posed a threat of injury if consumed. Typical magnitude of this type of incident: Replacement Cost $141,000 Product Recall cost: $55,000 Fast track your claim We know that when you have a claim you want it paid fast. Some claims are complex, yet others are straightforward. If indemnity can be granted and all the supporting documents are received, Liberty can settle Food and Beverage claims up to $75,000 within three business days. Our goal is to make things simple. We quickly settle small claims without any fuss. 3

4 HOW TO FILL OUT THIS FORM Please ensure you answer all questions. Any unanswered or illegible questions will delay our decision as to whether we can offer insurance cover. 1. Full name of applicant to be insured 2. ABN 3. Applicant s mailing address 4. Applicant s insurance broker address 5. Expected turnover for the next 12 months (in Australian Dollars) 6. Does the Applicant s Food Safety Procedures incorporate a written Hazard Analysis and Critical Control Point (HACCP) programme for all products, which has been certified by an independent third party in the last 12 months? Yes No 7. Does the Insured s Products include processed meats, unpastuerised juice, cheeses, or sprouts? Yes No 8. Has the Applicant been operating for less than twelve months? Yes No 9. Does the Applicant, its directors, officers or any other person to the knowledge of the Applicant have or in the past have had knowledge of any, threatened or suspected withdrawal, recalls, extortions, tamperings, contaminations, Product Withdrawal, Unsafe Product, Product Recall or Adverse Publicity involving any of Applicant s products during the last five (5) years? Yes No 10. Limit selected: 11. Sublimit selected: Indicative Pricing Limit Options Self Insured Retention Sublimit - Retailer Costs & Product Withdrawal (combined) What is this? Premium Options by Annual Turnover All premiums are plus 10% GST plus Stamp Duty $2m & less $2m to $5m $5m to $10m $10m to $15m a) $500,000 Nil $25,000 $3,916 $5,619 $7,248 $8,299 b) $200,000 Nil $25,000 $3,035 $4,356 $5,619 $6,434 c) $100,000 Nil $25,000 $2,353 $3,376 $4,356 $4,987 d) $500,000 Nil $100,000 $10,166 $11,869 $13,498 $14,549 e) $200,000 Nil $75,000 $7,202 $8,522 $9,785 $10,600 f) $100,000 Nil $50,000 $4,436 $5,460 $6,439 $7,071 Conditions: 1. No cover in place until confirmed in writing by Liberty Australia. 2. All premiums are valid until 31st March 2019, and include 15% brokerage. 3. This proposal form can be ed to food.beverage@libertyiu.com 4. The above pricing is subject to Q.6. being Yes and Q.7. to Q.9. being No. 5. This pricing is for a 12 month policy period, and is the minimum premium and can not be short termed. 6. Coverage provided by the Liberty Food & Beverage Policy Wording Declaration I declare that I have made all necessary enquiries into the accuracy of the responses given in the Proposal Form and confirm that the statements and particulars in this Proposal Form are true and complete and that no material facts have been omitted, misstated or suppressed. I acknowledge receipt of the Important Notices and confirm that I have read and understood them. I confirm that I am authorised by the Applicant to complete, sign and submit this Proposal Form on behalf of the Applicant. Signed Title Print Name Date 4

5 Important Notices Your Duty of Disclosure Before you enter into a contract of general insurance with an insurer, you have a duty, under the Insurance Contracts Act 1984 (Cth), to disclose to the insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer s decision whether to accept the risk of the insurance and, if so, on what terms. You have the same duty to disclose those matters to the insurer before you renew, extend, vary or reinstate a contract of general insurance. Your duty however does not require disclosure of matter: that diminishes the risk to be undertaken by the insurer; that is of common knowledge; that your insurer knows or, in the ordinary course of its business, ought to know; as to which compliance with your duty is waived by the insurer. Non Disclosure If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce their liability under the contract in respect of a claim or may cancel the contract. If your non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from its beginning. Privacy Notice Liberty International Underwriters (Liberty) is a trading name of Liberty Mutual Insurance Company, which is a company incorporated in the United States. It is a member of Boston-based Liberty Mutual Group (LMG). Liberty Australia s head office contact details are: Address: Locked Bag 18, Royal Exchange NSW 1225, Australia Phone : Liberty is bound by the Privacy Act 1988 (Cth) and its associated Australian Privacy Principles when it collects and handles your personal information. Liberty collects personal information, including from insurance brokers, in order to provide its services and products, manage claims and for purposes ancillary to its business. Liberty passes it to third parties involved in this process such as Liberty s related companies, reinsurers, agents, loss adjusters and other service providers. We may store your information with third party cloud or other types of networked or electronic storage providers. Third parties may be located locally or overseas in the United States, Canada, United Kingdom, Singapore, Hong Kong and Malaysia. Your information may be transferred to countries without comparable privacy laws if it is reasonably necessary to provide you with the products or services you seek from Liberty. If you do not provide the personal information Liberty or other relevant third parties require to offer you specific products or services, Liberty may not be able to provide the appropriate type or level of service. If you wish to gain access to or correct your personal information, make a privacy complaint, or if you have any query about how Liberty collects or handles your personal information please write to Liberty s Privacy Officer at the address above or by ing: privacy.officer.ap@libertyiu. com. To obtain a copy of Liberty s Privacy Policy go to Liberty s website ( or request a copy from Liberty s Privacy Officer. When you give Liberty personal or sensitive information about other individuals, Liberty relies on you to provide its Privacy Notice to them. If you have not done this, you must tell Liberty before you provide the relevant data. Subrogation If Liberty grants indemnity under this policy then Liberty shall be subrogated to all of the Insured s rights of recovery against any person or entity whether or not a payment has in fact been made and whether or not the Insured or Insured Person has been compensated in full for their loss. The Insured must, at its own cost, provide all reasonable assistance to Liberty (including, but not limited to giving information, signing documents and giving evidence) to help enforce those rights. The Insured must not do anything that may prejudice Liberty s position or potential or actual rights of recovery against any parties. Any amounts recovered by Liberty in excess of Liberty s total payment to the Insured shall be restored to them less the cost to Liberty of such recovery. Claims Made Insurance This is a proposal for a Claims Made policy of insurance. This means that the policy covers you for any claims made against you and notified to the insurer during the policy period & reporting period. The policy does not provide cover in relation to: Insured Events that occurred prior to the inception date in the policy; any claim made, threatened or intimated against you prior to the commencement of the policy period; any claim or fact that might give rise to a claim, reported or which can be reported to an insurer under any insurance policy entered into before the commencement of the policy period; any claim or fact that might give rise to a claim, noted in this proposal or any previous proposal; any claim arising out of any fact you are aware of before the commencement of the policy period; any claim made against you after the expiry of the policy period. However, the effect of Section 40(3) of the Insurance Contracts Act 1984 (Cth) is that where you become aware, and notify us in writing as soon as is reasonably practicable after first becoming aware but within the policy period, of any facts which might give rise to a claim against you, any claim which does arise out of such facts shall be deemed to have been made during the policy period, notwithstanding that the claim was made against you after the expiry of the policy period. 5

6 Why choose us? We are available when you need us most As part of your policy you have exclusive use of our panel of consultants who can assist you in the event of a claim. We will pay these costs for 12 months from date of loss. The panel consist of food technologists, crisis management consultants, malicious product tamper experts and PR consultants. You can reach our hotline 24/7 on We are available outside of business hours to assist. Contact our Crisis Management team For more information contact one of the Crisis Management team: SYDNEY Michael Lincoln Vice President, Crisis Management T E Michael.Lincoln@LibertyIU.com Ashley Leszczuk Underwriter, Crisis Management T E Ashley.Leszchuk@LibertyIU.com BRISBANE Bill Hardie Underwriter, Crisis Management T E Bill.Hardie@LibertyIU.com MELBOURNE Donna Niblock Assistant Vice President, Crisis Management & VIC Branch Manager T E Donna.Niblock@LibertyIU.com Keith Bostock Underwriter, Crisis Management T E Keith.Bostock@LibertyIU.com Liberty International Underwriters, a trading name of Liberty Mutual Insurance Company (ABN ) incorporated in Massachusetts, USA (the liability of members is limited); Liberty International Underwriters Limited (No ), incorporated in Hong Kong; Liberty International Underwriters Pte Limited (Registration No. LF12903), trading as Liberty International Underwriters, Labuan Branch; and Liberty International Underwriters Pte Limited (UEN C), incorporated in Singapore (together Liberty). This document provides general information and does not take into account your personal situation. You should not rely on this information without first obtaining professional advice Liberty. Please contact Liberty for a licence to use and distribute this document. This information is current as at November /18.v7