Privately held insurance broker Lockton has introduced new hybrid coverage to address emerging risks in the food industry as it responds to millennial market preferences.
According to the insurer, food suppliers, particularly groceries, are becoming more meticulous about food safety and are proactive about preventing food contamination and the occurrence of food-borne illnesses, as well as the adoption of salubrious food preparation processes in their operations.
These new requirements reflect a response to the preferences of millennials who are a major market for grocery store take out and in-store dining services, according to a report by
PRNewswire.
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To address this new requirement, Lockton developed a hybrid risk management package that combines protection for foodborne illness, supplier contamination public health shutdown of retail locations, as well as processing exposures of accidental contamination.
Previously, economic loss protection insurance for these events had to be acquired through separate policies - for food manufacturing and for food service.
“The rise of hybrid processing and service creates a new vertical integrated risk,” the report said.
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