5 Items to Consider for Brokers Writing Food Bank Insurance

Food Bank InsuranceBelow is a list of five major concerns every property & casualty insurance broker should consider prior to committing themselves to insuring a Food Bank. Food Banks are wonderful and necessary! They collect donated food in a warehouse or grocery-like environment and provide for low-income families, the homeless and the hungry. However, the agents and brokers who choose to write food banks must be aware of the red flags for these specific risks.

We know insurance brokers are innate salespeople. They’re selling themselves before they’re even presenting quotes! However, at the same time insurance agents are selling their trust, ethics and knowledge – they are also debating – should I write this risk? It’s a valid question. Insurance brokers put a lot of time and energy into their clients – whether that involves helping them control their losses, analyzing their emergency evacuation plans, shopping their insurance or simply remembering to wish them happy birthday – insurance brokers still have to compare the pros and the cons.

So what should they find out first?

  1. Auto Risk Management Program – The losses on a food bank’s auto policy can be adverse if not properly managed. You should check to make sure the Food Bank has updated procedures that are visible for all volunteers. An Auto Risk Management Program should include the insured’s process for hiring and terminating drivers. This should also involve what the insurance carrier considers minimum requirements and automatic declinations based on a driver’s Motor Vehicle Record. If the insured has Non-Owned Auto and allows drivers to use their own vehicle, the insured should be inspecting the drivers’ vehicles for safety reasons – such as tire pressure, oil changes, gas tank, functioning mirrors, etc. The Auto Risk Management Program should also include information regarding continuing education opportunities and training courses for the drivers. This is especially important for Food Banks that require their drivers to have a Commercial Driver’s License (CDL).
  2. Accident & Health (A&H) for Volunteers – Does your potential insured have volunteers working for them? If so, they should have an Accident & Health policy that extends to their volunteer labor. Generally speaking, if an incident occurred and one of the Food Bank’s volunteers was hurt or injured, the organization’s Workers Compensation insurance coverage would not extend to the volunteer. However, if the Food Bank has Accident & Health Insurance, the volunteer’s medical costs would be covered and the insured would have avoided a General Liability claim.
  3. Food Distribution –Where does the Food Bank’s food come from? Who is distributing it? How is it being processed? What procedures are in place to ensure that the food is safe and not contaminated? Is it more of a grocery or a wholesaler? Your prospective client should know these answers. The Food Bank is providing a necessary service to people in need and in order for their organization to continue normal operations they have to know how to avoid food-related hazards. According to the Natural Resources Institute, hazardous food sources include biological, chemical and physical hazards. The Food Bank has a responsibility to serve quality, low-risk foods that are prepared in a clean, uncontaminated, temperature-friendly environment. Managed safety precautions can prevent foodborne illnesses, food contamination, bodily injury and other related losses.
  4. Youth – Does your prospective client offer their services to children and youth? If yes, it is in the best interest of the insured to protect these children and their organization with Sexual Abuse & Molestation Insurance Coverage. Not that anyone really wants to think about it, but the risk is real. An abuse claim can not only traumatize the victim, but it can also damage an organization’s reputation with the people they serve, within the community and overall public image. In the world of insurance – it will also come back to their insurance premium and loss history, a terrible experience they will have to explain to insurance carriers each time they shop their insurance.
  5. Nutritionist – Does your prospective client collaborate with or employ a nutritionist? Nutritionists often provide workshops or training that offer nutritional education. This type of service could be a professional exposure for the Food Bank, but it also may broaden the scope of their overall general liability exposure as well.

For more information on Food Bank Insurance, contact AFC Insurance at 877-456-5323 or email submissions@afcins.com.

Resources:

Natural Resources Institute, “Potential Food Hazards

AFC Insurance writes this blog. The content and opinions expressed in this blog are strictly for informative purposes from sources that are presumed accurate. AFC Insurance does not assume responsibility for any misguided information and no guarantees are implied.