JGS SEMINAR ON NEW FOOD SAFETY LAW
Protect Your Customers And Your Business:
JGS Seminar On New Food Safety Law
C
ompanies in the food industry
would certainly agree that
producing safe products is of
paramount importance. How
can you make money if you are
making your customers ill? Whether it is a
hit to a brand’s reputation or a significant
drop in sales, you would think businesses
would not need more incentives to do the
right thing.
Due to raise in foodborne illnesses and
product recalls, President Obama signed
into law the Food Safety Modernization
Act (FSMA) in 2011. It aims to ensure the
US food supply is safe by shifting the focus
from responding to contamination to
preventing it. FSMA were finalized in 2015
and 2016. These new regulations on food
safety carry criminal penalties.
In an effort to keep our clients informed
of important issues in a timely manner,
JGS Insurance held a seminar — The
Food Safety Modernization Act (FSMA)
“Bites” — in March of this year to inform
companies in the food industry what they
need to know to protect themselves. The
seminar touched on various FSMA-related
topics, including the following:
Criminalization of foodborne illness –
What can you do to protect your company?
Strategic risk transfer – What is an
insurance policy after all?
Product liability and recall claims – Do
you know what to do if it happens to your
company?
The seminar was moderated by Gwen Luu,
Vice President of Property & Casualty who
concentrates on assessing and managing
brand reputations and providing practical
and cost-effective insurance solutions.
The focus of the seminar, Gwen said, was
“the current, multi-faceted challenges in
assessing risk in the ‘Farm to Fork’ supply
chain and how to develop risk management
strategies, navigate FSMA compliance, and
assist [clients] in staying better informed
with a variety of claim scenarios if a
simulation someday becomes a reality.”
THE SEMINAR WAS A
HUGE SUCCESS AND
ATTENDEES WERE
IMPRESSED WITH THE
PROFESSIONAL LINEUP
OF SPEAKERS AND
THEIR PRESENTATIONS.
Shawn Stevens, a food industry consultant
and lawyer, gave a brief history of the food
safety revolution that occurred from 1993
to 2017. He then colorfully highlighted
the main aspects of the FSMA’s criminal
liability provisions — from investigators
to swab-a-thons to cold cases — and what
companies can do to protect themselves
— from self-inspection to knowing
the suppliers you work with to buying
insurance.
Wilson Torres and Bart Adelsky, general
liability claims professionals with Travelers,
outlined the food claim process in general
terms. They livened up their presentation
with real-life examples of product liability
claims. With the insured’s collaboration
and timely claims management, Travelers
helps their insured protect their business,
brand, and reputation to achieve optimal
outcomes.
Product recall insurance was a hot topic.
Florian Beerli, Senior Vice President,
Product Recall for Weshchester, a Chubb
Company, sliced and diced the coverage
comparison between Product Withdrawal
and standalone Recall Insurance. Florian’s
analysis of the multitude of costs associated
with product recalls led to a comprehensive
discussion of insured events and types of
coverage such as defense, loss of profits,
and consultant cost left many companies
wondering they were properly protected
under their risk manageme