Importance of Recall Insurance

Brokers Can help Growers Minimize Losses

By Jessica Theisman, Associate Editor

California Ag Today recently met with Caitlin McGrath, the national product recall and contamination risk consultant with Lockton Insurance Brokers. Insurance is needed for California growers in case of recalls and contaminations. Lockton feels the most important part of finding the right recall insurance is the consulting element.

Caitlin McGrath, Lockton Insurance Brokers

“Now, what I think is the most important part of insurance coverage is the consulting element,” McGrath said.

These are consulting services that are available if you are a recall or contamination insurance purchaser that allows you access to specialists during and before incidents. One of the struggles that McGrath is noticing is that the quality assurance folks she speaks to are not insurance buyers.

“They are the ones finding out the information about all these services that are available, and it’s not always getting down into the field,” she said.

Preparation in the case of recalls or contamination is important.

“Fan Favorite, as I call them, do a lot of really great work on behalf of a lot of our clients,” McGrath said.

Some of that work can be Hazard Analysis Critical Control Point (HACCP) training and mock recalls. Financial costs are rising due to the increasing number of recalls.

“We believe that that’s the effect of [the Federal Information Security Management Act or] FISMA. They are getting larger in financial cost, and that has to do with the amount that is being recalled and the implications in terms of publicity,” McGrath said.

Recall plans need to cover all of the elements, not just mock recalls.

“The internal message is just as important and knowing who is going to handle what within an organization. Planning and practicing that is really critical to help mitigate if there is a problem,” McGrath explained.

“Having directives around the use of social media as an employee of an organization is very important, but just one department not talking to another is going to have a huge part in this,” she said.

Buying product contamination insurance is expensive, but necessary. Since McGrath started, the number of brokers has nearly tripled.

“I think that not having insurance is now the outlier, so I think the majority of folks are still buying,” she said.

2015 SPECIALTY CROP BLOCK GRANT PROGRAM WORKSHOPS

During the first two weeks of November, the California Department of Food and Agriculture (CDFA) will present four workshops and two webinars on the 2015 Specialty Crop Block Grant Program (SCBGP) competitive solicitation process.

Workshops will feature an overview of the program, a walkthrough of how to use the online application system, a description of requirements for grant recipients, as well as helpful grant writing tips. All prospective SCBGP applicants are encouraged to participate.

There is no cost to attend the workshops or webinars; however, space is limited and CDFA requests that attendees register in advance. To reserve a seat, individuals planning to attend should email grants@cdfa.ca.gov with their contact information, number of seats required, and workshop location. Further details will be provided with confirmation of registration.

Workshops and webinars will be held on the following dates:

FRESNO COUNTY: November 4, 2014 (Tuesday) from 9:30 am to 11:30 am
 – American Pistachio Growers, 9 River Park Place East, Suite 410, Fresno, CA 93720

SACRAMENTO COUNTY: November 5, 2014 (Wednesday) from 9:30 am to 11:30 am
 – University of Phoenix, 2860 Gateway Oaks Drive, Sacramento, CA 95833

WEBINAR 1: November 6, 2014 (Thursday) from 1:30 pm to 3:30 pm – Details will be provided upon registration.

ALAMEDA COUNTY: November 12, 2014 (Wednesday) from 9:30 am to 11:30 am – 
Alameda County Farm Bureau, 638 Enos Way, Alameda, CA 94551

MONTEREY COUNTY: November 13, 2014 (Thursday) from 9:30 am to 11:30 am – Grower-Shipper Association, 512 Pajaro Street, Salinas, CA 93901

WEBINAR 2: November 14, 2014 (Friday) from 9:30 am to 11:30 am – Details will be provided upon registration.

CDFA conducts an annual competitive solicitation process to award SCBGP funds to projects that solely enhance the competitiveness of California specialty crops. Specialty crops include fruits and vegetables, tree nuts, dried fruits, horticulture, and nursery crops (including floriculture).  For more information, please visit www.cdfa.ca.gov/grants.