The American Meat Institute’s (AMI) Risk Management Insurance Program has added a new and valuable benefit for the meat and poultry industry: product recall insurance.
recalls are extremely costly in real dollars
and in damage to a company’s reputation. Not
only must a company cover the cost of lost
product, but it also must cover expenses
incurred by customers, recover lost revenues,
rebuild its reputation and manage the effect
that the recall may have on sales.
AMI’s new Product Recall Insurance Program
offers members coverage against accidental
product contamination, malicious product
tampering and threat of contamination, as well
as brand integrity protection. The program
covers expenses associated with the value of
contaminated product, lost gross profit,
customer recall expenses, rehabilitation
expenses, crisis management consulting and
public relations expenses.
Companies enrolling in the program are given
the broadest coverage available in the
industry. In addition to a $25 million
capacity, members have a choice of deductibles
and are not required to carry coinsurance.
Further, coverage is extended to the
company’s customers, providing them an
additional level of comfort.
The program also provides access to
professional crisis management services, from a
public relations firm of the company’s
choosing, including pre-loss planning and
post-loss controls and investigations.
“Nothing is more damaging to a
company’s reputation and profitability than a
product recall,” said AMI President J.
Patrick Boyle. “This insurance program gives
meat and poultry companies security in knowing
that losses will be covered in a product
Risk Management Insurance Program is
administered by MacDougall Risk Management and
includes the following components in addition
to Product Recall Insurance: workers
compensation, commercial liability (general and
umbrella), property insurance, transit/ocean
cargo, business automobile, executive risk,
foreign insurance and financial risk. Also
available to AMI Supplier Members is the
Product Liability Insurance Program.
MacDougall Risk Management offers these
programs at special rates for AMI member
companies. For more information about the
Product Recall Insurance Program or any other
insurance programs, contact Eric MacDougall at
800/815-0060 or AMI’s Director of Member
Services Jacky Sher at 703/841-2400.
AMI represents the interests of packers
and processors of beef, pork, lamb, veal and
turkey products and their suppliers throughout
North America. Headquartered in Washington,
DC, the Institute provides legislative,
regulatory and public relations services,
conducts scientific and economic research,
offers marketing and technical assistance and
sponsors education programs.
AMI's Product Recall Insurance Program Gives Industry Peace Of MindTuesday, September 29, 1998
For more information contact:
Vice President, Public Affairs
Manager, Public Affairs