If you are a manager or owner in the food and beverage industry, you know that it takes attention to many details to create a financially sound business, including the freshness of your ingredients, the right equipment, and a service-oriented staff. Of course running this type of business comes with risks. Here are some risk management tips for the food and beverage industry.
Supply Chain Risk. Supply delivery can be interrupted by various factors, such as adverse weather or infrastructure issues. Losing even one dependable supplier can lead to a loss of income, which can affect the quality, consistency and service of a foodservice provider. Having the right type of food manufacturing insurance coverage can cover the loss of that income, plus extra expenses that may result.
Equipment Risk Management. Food Manufacturing equipment can meet many challenges, including mechanical breakdowns, damage caused by power surges, operator error, and more. Breakdowns may be able to be prevented by utilizing infrared testing, inspections, and getting assistance in sourcing replacement for damaged equipment.
Spoilage and Contamination. Power outages and other issues beyond your control can result in spoilage or contamination of food. According to the Centers for Disease Control, an estimated 48 million illnesses are borne by food in the U.S. each year. Although cases of foodborne illnesses cannot always be prevented, you can still be covered financially with the right food contamination insurance policy.
Another risk that any business faces is cyber exposure. Restaurants are at particular risk because of the large amount of personal and financial data, including credit card and bank account number, they keep on file.
At Sinclair Risk & Financial Management, we understand the unique challenges faced by the food and beverage industry. Our Risk Safeguard Advantage system was born out of a philosophy that combines uncommon risk analysis and strategic risk management with human resources consulting and training to provide measurable, sustainable results. Please contact us at (877) 602-2305 for more information.