Food Processing Risk Management

MFGunderstands the unique demands and exposures of specialized food processors and beverage producers. Our service platform for the Food & Beverage industry tailors a program designed to fit your unique needs. For your risk transfer resource, contact a MFG risk consultant for more information about developing or enhancing your risk management program. We consult for a broad range of Food Processors and Beverage Producers including: Meat Processing, Dairy Products, Fruit & Vegetable, Bakery, Candy, and Confectionary, Wine & Spirits, Prepared & Snack Food, Pasta Manufacturing, Craft Brew & Wineries.

MFG Insights

    Prepared food products manufacturers receive raw goods from dairies, farms, orchards, fishermen, butchers, slaughterhouses or food brokers. The manufacturer processes, packages and sells a wide variety of food products such as fruit, vegetables, meats, fish, shellfish, poultry, prepared meals and desserts. Producing these items includes exposures from many different processes and operations, such as baking, cooking, deep-fat frying, cooling or freezing of the prepared food.

    Property exposures come from the heating, refrigeration, and automated conveyance and processing equipment. All machinery and equipment must be inspected and maintained regularly to avoid wear and tear or overheating losses. Wiring must be up to date and of sufficient capacity. All machinery should be grounded to prevent static buildup and discharge. Due to its combustibility, an ammonia detection system should be in place if ammonia is used as a refrigerant. All frying operations must be carried out under hoods with suppression systems in place and automatic fuel shutoffs. Even a small fire could result in a total loss as state, local, or federal regulations may require the disposal of major portions of stock and raw materials that have been exposed to fire, smoke, heat or water. To reduce the potential for total loss, raw materials and final products should be stored away from the processing operations. Spoilage losses can be severe if the refrigeration and cooling equipment malfunctions or loses power. Controls, such as alarms, must be in place to warn if power is out or if temperature rises in coolers and freezers. Emergency backup systems, such as emergency generators, should provide power if an outage or shutdown occurs. The business income exposure can be very high as some production equipment may be difficult to repair or replace quickly.

    Additional exposures to consider evaluating with our risk consultants are: Equipment Breakdown, Crime, Inland Marine, Premises, Products, Environmental, Automobile and Workers Compensation.


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