Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
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article bug SUMMER 2017 151 Mitigating Risk As more illness claims are brought against food manufacturers, the industry has become skittish. "So how do we solve this problem? Through contracts and insurance," Stevens said. "You need solid agreements with ingredient suppliers, and adequate levels of insur- ance." Stevens recommended recall insurance and a CGL policy, which stands for Commercial, General, and Liability insurance. In addition, contracts should ensure that every supplier also has recall insurance and a CGL policy. Recall insurance, which is separate from general liability insur- ance, is crucial. Undeclared allergy claims and recalls are outpacing all other recalls, Stevens noted. "The industry has spent so much time producing a safe product, it has neglected to point out allergens within. However, the government has become aware of the issue and has declared as policy that allergens are a priority," Stevens said. With the enactment of the Food Safety Modernization Act, companies will be mandated to identify and document hazards that exist, which will put more pressure on manufacturers. The FDA has tools to limit foodborne illnesses—one of which is FSMA. But requiring a food safety plan isn't going to prevent ill- ness, Stevens noted. Company executives and food safety managers can be held responsible for foodborne illness outbreaks under Corporate Officer Criminal Liability law, which states that people in these top positions who are aware of a condition and can correct or eliminate the condition but fail to do so, can be charged with a misdemeanor, resulting in a $250,000 fine or a year in prison. In addition to contracts and insurance, Stevens outlined five takeaways makers should establish in their facilities to mitigate risk: • Know your suppliers. • Conduct testing on your products. • Know the labels on your products. • Remember the three C's: Compassion, Commitment, Communication. • Maintain a robust food safety culture within your facility. "Culture is everything," Stevens said. "Quality of employees is every- thing. The better culture, the better employees, the fewer problems you're going to have." Sara Kay is the editorial and education content associate for the Specialty Food Association. @ A recording of the full session, "Regulatory and Criminal Risk: Steps You Can Take to Reduce the Risk of Litigation," held at April's Specialty Food Business Summit, can be found at learning.specialtyfood.com. specialtyfood.com 151 SUMMER 2017 specialty food maker