Global multiline property and casualty insurer ACE has cautioned food and beverage (F&B) manufacturers to be ready for more product liability claims, as new EU food labelling regulation takes effect this year.
The new regulation, which is aimed at making food labelling easier for consumers to understand, will simplify the current legislation on food and nutrition labelling.
It requires all the food producers to provide allergy information on food products that are sold in unpacked formats in catering and retail outlets.
The existing labelling legislation will require inclusion of novel ingredients such as nanotechnology and the types of vegetable oil or other ingredients in pre-packed foods.
ACE Continental Europe regional technical and underwriting casualty manager Connie Germano said that this important new EU legislation should help reduce the risk of accidental contamination for consumers.
Germano added, "As the regulation is rolled out across Europe and public awareness grows, another consequence is that it may drive increased product liability exposure for a wide range of businesses involved in the food production and distribution chain.
"Today a contamination incident can develop into a full-blown crisis for a business almost instantly. At ACE, we believe that comprehensive insurance combined with advance risk assessment, robust food safety systems and crisis management is the best defence."
red24assist Food Safety and Product Recall head Eric Smith said, "Companies and especially smaller and middle market businesses need to navigate the conditions created by the new legislation and be able to effectively manage the changing risks they face."
Since 2012, ACE in partnership with specialist consultancy red24assist has been providing middle-market companies in Continental Europe with contaminated product insurance.
The parties provided coverage for recall costs, redistribution costs, product rehabilitation and/ or restoration costs, destruction costs, extortion costs, business interruption costs and crisis consultancy costs.
