PRODUCE GROUPS JOIN IN RECALL INSURANCE PLAN

ROBERT VOSBURGH

ARLINGTON, Va. -- An industry-sponsored insurance program has been developed to protect policyholders against liability during outbreaks of foodborne-illness.

Both the International Fresh-cut Produce Association, based here, and the Western Growers Association, Irvine, Calif., are offering the plan to member growers, processors, distributors and retailers.

The plan, Total Recall PLUS, provides communications support, brand rehabilitation and financial coverage for companies, including gross loss of sales during the period the product is off the shelves, in addition to costs incurred in replacing the recalled products.

The policy also includes the services of a crisis management team, which provides policyholders with pre-incident crisis preparedness, real-time response and post-incident communications support to rehabilitate the brand, according to officials.

"Growers, processors, distributors, restaurateurs and retailers recognize the risks involved in handling any food product," said Edith Garrett, IFPA president. "[This plan] offers our members a way to mitigate these risks for both branded and nonbranded products."

Don Dressler, WGA president, noted that the nature of the industry has led to the creation of strong brand identities in the segment, where sales topped $1 billion last year, and therefore, much to protect.

"Growers and processors are cultivating strong brands that stand for quality and freshness in the consumers' eyes. This makes it of utmost importance for produce companies to protect their brands against the effects of a product recall," he said.

The industry associations entered into partnership with Insurance Brokers Service, based in Chicago, and Aon Agricultural Risk Services, Kansas City, Mo., to develop the policy for members.