If you think a recall is unlikely, or that you’ll be covered in the event it happens, think again. From a food safety standpoint, we are living in a dynamic and fast-changing world. Because microorganisms exist naturally in our environment, they will continue to find their way into many of our foods. Given recent improvements in national foodborne illness outbreak surveillance, more illnesses are identified and more outbreaks are reported.
Explore this issueDecember/January 2011
By extension, these outbreaks are associated with an increasing number of foods, and more companies are affected, either directly or indirectly. Thus, if your company has not yet been confronted with an alleged foodborne illness, associated with an emerging outbreak, or involved in a resulting recall, chances are it will in the future.
In the food industry, we also know that the potential downstream consequences of any upstream food safety problem can be catastrophic. If a single raw material supplier unknowingly introduces contaminated ingredients into the supply chain, each of the downstream products manufactured with those ingredients will be affected. As demonstrated in many recent outbreaks and recalls, the actions of a single supplier can impact thousands of downstream products processed by hundreds of different companies.
More Demands that Suppliers Test
But the analysis doesn’t stop there. To help mitigate such risks, at least in part, more companies are demanding that their raw material suppliers test their products for foodborne pathogens. Many companies are also increasing their own internal sampling and testing their outgoing products as well. A higher number of ingredients and food products sampled and tested by industry, however, will translate directly into more positive findings. Under the U.S. Food and Drug Administration’s (FDA) Reportable Food Registry, which first went into effect last year, any such positive findings obtained from products that could adversely affect the public health must be reported to the agency. Of course, this can, and has in many instances, led to additional widespread recalls.
Thus, regardless of whether foodborne contaminants are identified through internal testing or whether they escape detection until downstream illnesses are reported, all food companies must recognize that massive and widespread recalls can and will continue to occur. To enhance protection against these seemingly uncontrollable risks, all food companies should carefully assess their existing insurance policies and consider obtaining standalone food recall insurance.
While the merits of continuously assessing existing insurance seem obvious, the most important reason for a thorough review may not be readily apparent to the vast majority of food companies. Over the years, we have seen numerous food companies discover shortcomings in their coverage, or their insurer, long after a significant problem or crisis arose.