Lockton | Food Processing & Distribution

Food Processing and Distribution

The food processing and distribution sector has unique risks. Lockton has the depth of experience necessary to provide unparalleled program design, insurance placement and service to the most complex circumstances.

You will benefit from the strong relationships we have developed with the world’s most reputable insurers. In addition, our in-house risk management and claims cost control specialists provide all the resources you need on a global scale.

You will benefit from our expertise in coverage including:

Exposures relating to food-borne illness, product contamination, reputation damages, product recall and total recall
Batch Endorsements are used to treat all claims resulting from the contamination of one particular batch as one occurrence
Business Interruption for commercial and wholesale bakeries
Auto Liability for commercial and wholesale bakeries due to the delivery of their products to retail establishments on a frequent, if not daily basis
Significant Workers’ Compensation exposure due to the use of highly automated equipment and machinery

We specialize in risks such as:

Advertisers Liability
Casualty
Directors & Officers
Motor Truck Cargo
Property
Pollution Legal
Rolling Stock

Lockton Service

The key to our success is working in close partnership with each of our clients. Our specialists take time to listen and to understand your specific goals so that we deliver insurance solutions tailored to your requirements. This approach has earned us the trust of clients all over the world.

The same team that designs, negotiates and implements your business insurance plan with the carrier is also responsible for managing your service needs. This dedicated team approach increases our understanding of your business, allows us to anticipate your needs, and creates accountability and ownership by the team throughout the entire process.

Most insurance brokers promise a high-level of personalized service, but our unique structure allows us to actually deliver on that promise everyday. As a private, family-owned company, all our Associates focus solely on you, our client, rather than public shareholders.

We firmly believe we get business based on our expertise, creative solutions and outstanding service. Just as importantly, our client retention rate of 95 percent reflects our commitment to each and every client.

Success Stories:
	Critical recommendation saves food processing site $60K FM Global submitted a recommendation that a fire-alarm system be installed throughout a multi-building, five-acre food-processing site. The system, as required by FM, would have cost the client over $65,000. Lockton’s involvement was to review the client’s process and the FM recommendation and determine what measures should be taken. After our review of the process, we identified one critical area that housed finished goods. All other areas had minimal fire loading and were wet-vegetable processing. Lockton negotiated the recommendation with FM to install a single horn system in the finished goods area at a cost of $5,000. FM found the alternative acceptable, and we saved the client $60,000.

	Safety program saves food distribution company millions We assisted a major food processing and distribution client in establishing a “Best Practices” Safety and Loss Control program utilizing the best of what each of the regions had in place along with our own additions. This client recently made a very large acquisition and it was determined that the average worker’s compensation claim cost of our client was 20+% below that of the acquired company, which equated to several million dollars.

	Legal research leads to loss recovery for baking plant During a furnace repair, asbestos dust was released into our insured’s baking plant. State and Local officials intervened, the plant was closed, and a recall was ordered. As a result, the insured estimated damages to be approximately $5 million dollars for loss of product and production. The carrier denied coverage and refused to make any contribution to the loss. After attempting to negotiate with the carrier, we conducted our own legal research. With limited assistance from outside counsel, and the client’s corporate attorney, we drafted a strong coverage letter, outlining possible coverage. As a result of our position letter, the carrier made a substantial contribution to the loss and the client was able to recover their losses.

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