Food industry

 

The food industry is a rapidly growing branch of the economy and is strategically vital. It is also a very complex structure, including both production and processing facilities, but also the entire network related to procurement, logistics and services.

 

In addition, the activities of this specific industry are determined by a number of factors including atmospheric, political and economic, as 2019-2022 and the current situation have amply demonstrated. In addition, consumers' growing awareness of their existing and vested rights puts producers of broadly defined food, in particular, in a position where they should protect themselves against possible claims related to the delivery of defective products dangerous to life and health.

 

Such an extremely complex specificity of the food industry requires a holistic approach and view of this part of the industry. This means that the preparation of insurance solutions must be tailored to the current needs of the industry, but also to current market trends, both domestic and international. That is why it is so important to recognize risks and manage them appropriately. With such recognition it is possible to create a tailored insurance program that guarantees coverage for property losses, but also protects the company from wide-ranging financial losses.

 

The most important premise of the program is:

1. Providing security for property including: 
   
   • Buildings and structures
   • Machines and process lines including from breakdowns and damage to these machines
   • Current assets including those which require appropriate temperatures when stored
   • Equipment including computer hardware, information systems and software
   • Insurance of property in transit (cargo)
2. Profit loss protection:
   
   • As a result of damage to company's property, also as a result of lack of supply of utilities or resulting from lack of access to facilities as a result of damage to property in the vicinity of the plant
   • As a result of damage to property of suppliers and/or customers which has a direct impact on company’s profit loss
   • Resulting from breakdowns, damage to machinery
   • Resulting from the destruction and failure of computer equipment and/or information systems
3. Securing third-party claims by taking out appropriate third-party liability policies: 
   
   • Resulting from plant operation including:
     
     • employees claims in connection with accidents at work
     • third-party claims, e.g., in connection with environmental damage
   • Resulting from introducing contaminated products that threaten health or life. Here, of utmost importance is an innovative approach which will provide protection in terms of recalls, but also provide support in corporate image crisis.
4. Safeguarding potential claims arising from decisions made by company's management.
5. Safeguarding cyber-attacks which for computerized and automated industries can be as threatening as a fire or flood and can cause long downtime and, in a catastrophic scenario, the collapse of the plant.
6. Safeguarding possible environmental damage by entering into separate insurance coverages that protect the company more broadly than is the case in the extension of business liability policies.

 

An important addition to the insurance program for the food industry is the insurance of receivables due from contractors arising from the use of deferred payment terms (trade credit) for goods sold or services performed.

 

Trade credit insurance boils down to the insurer providing coverage for property losses caused to lenders due to the non-receipt of receivables from borrowers (both in the local market and foreign counterparties) for trade credit granted due to:

• delayed payment in relation to the agreed deadline,
• insolvency of the counterparty (e.g., declaring its bankruptcy),
• events of a political nature in the case of foreign counterparties (e.g., decisions and laws in their countries of domicile)

 

Benefits of accounts receivable insurance:

• Transfer of risk of insolvency of customers to the Insurer;
• Possibility to check contractors before a transaction;
• Increased competitiveness by extending payment terms or increased credit limits for customers;
• Improved liquidity;
• Increased credibility and prestige of the company in the eyes of contractors and others.

 

Attis Broker Sp. z o.o. has gained its 20 years of experience in insuring the food industry by serving many clients in the broadly defined food industry, including some of Poland's largest producers of meat, processed fruits and vegetables and nuts. Our portfolio currently includes agricultural and dairy companies, as well as one of Europe's largest alcohol producers.

 

With our many years of cooperation with Insurers in the local market as well as abroad, and thanks to the specialization of companies within the MJM Holding group which we belong to (including Smart Re - a reinsurance broker), we create customized solutions that meet the expectations of the most demanding customers.