Unpacking Food Recall Impacts

Placing You First Insurance Podcast by CRC Group

Imagine the financial and logistical nightmare of discovering that a single contaminated ingredient has infiltrated multiple food products across your supply chain. That's exactly what we're examining with John O'Malley and Chris Martin from CRC Group's Minneapolis office. This episode unravels the complex web of costs and liabilities that ensue from food recalls, using real-world incidents to stress the importance of proactive risk management and the critical role of comprehensive recall insurance to safeguard against these multifaceted challenges. We share essential strategies, from stringent quality control processes to implementing test and hold policies, we discuss how to ensure contaminated products never reach consumers. Don't miss this episode—subscribe and share!

Visit REDYIndex.com for critical pricing analysis and a snapshot of the marketplace.

Do you want to take your career to the next level? Join #TeamCRC to get access to best-in-class tools, data, exclusive programs, and more! Send your resume to [e-mail] today!

Chapter

1. Unpacking Food Recall Impacts (00:00:00)

2. There were 578 food products recalled in the first six months of 2024. Can either of you guess which food group (5 of the top 10) was the main culprit? (00:01:46)

3. Is it common to see recalls connected, where one spawns another, and so on? (00:02:46)

4. Walk us through this scenario: a pound of cheese worth $20 makes it out of the factory and into 500 salad kits or let’s say onto a line producing 500 kits because that cheese is going a LONG way if it’s making it into that many salads. (00:05:02)

5. Do either of you have any other real-world examples of recalls that have had a widespread impact beyond the initial manufacturer that you’ve dealt with or been personally impacted by? (00:07:19)

6. What advice would you give to a food manufacturer or distributor facing their first major recall? How do we keep the impact as small as possible? (00:08:54)

7. Can you walk us through the process of determining the right level of recall insurance for a manufacturer? (00:11:22)

8. Are companies required to carry this kind of insurance, or is this voluntary? (00:13:11)

9. How can partnering with a CRC Group producer help agents with food manufacturing or distribution insureds? (00:14:32)

10. Rapid Fire! (00:15:50)