With today's competitive agribusiness environment, increasing pressure on production, efficiency and margins can easily push insurance considerations to the back burner. Afterall, what is the payoff of dedicating any time to a service that the goal is to never have to use?
Many in leadership and management assume their insurance broker has all the information needed to develop policies to adequately cover their business and assets, but unfortunately, any shortcomings won't become apparent until it's too late.
To avoid a devastating financial burden as a result of being underinsured, risk management and property/casualty experts advise managers not to reserve the annual policy renewal procedure as the only time a year to evaluate your coverage. Just as your business is changing and expanding over time, so are your insurance and safety needs.
Additionally, new insurance products are available to reduce exposure to modern threats, such as cyber crime and terrorism,. Use the following tips to guide the next conversation with your agent and gain peace of mind that your company is fully covered in case of an accident or emergency.
One example of a coverage option that is often overlooked is cyber liability. Data breaches are becoming increasingly common in today’s business world and can cause significant loss of income and reputation for your operation.
General liability policies usually exclude losses from cyber crime, so if this is a concern, it must be covered separately. Examples of other exposures that may be excluded from other policies are foreign liability for companies that export products overseas and species mortality for firms involved in livestock.
Finally, product recall insurance is another policy that feed companies should consider. Recalls can take a devastating toll on any company and are usually excluded under the general insurance policies. Since the Food Safety Modernization Act now gives the FDA the power to mandate feed recalls due to adulterated or misbranded product, this type of coverage significantly reduces your risk.
Building on the essential policies to create a comprehensive insurance program right for your business comes from working with a trained insurance agent from a trusted agribusiness commercial provider.