With the food retail industry sales revenue valued at $5.32 trillion dollars, it’s no wonder why you want a piece of this thriving market. However, breaking into the food market is only half the battle. Even with the quality assurance process your food product line may go through, it only takes one negative occurrence with your product to cause unexpected difficulties. If a food poisoning claim can happen to Peter Pan Peanut Butter, a Conagra brand, it can most certainly happen to you too.
The lawsuit Conagra faced illustrates the importance of product liability insurance and serves as a lesson for business owners everywhere to be prepared for the worst case scenario. Product liability insurance provides protection against bodily injury and property damage losses caused by a product you sold, manufactured or distributed. Types of product liability claims include defective warning or instructions, design, and manufacturing.
Let’s walk you through Conagra’s situation.
Here’s What You Should Know
Peter Pan Peanut Butter was blamed for a nationwide salmonella outbreak, due to their peanut butter product. There were over 600 people in 47 states who experienced the negative outcomes of food poisoning. The company claims to have no knowledge of the peanut butter being contaminated with salmonella before it was shipped to stores all across the nation. On the other hand, plea agreement paperwork claims that their peanut butter tested positive twice for salmonella. Conagra entered a guilty plea and agreed to pay $8 million dollars in fines and $3.2 million in cash forfeitures.
Legal Fees Product Liability Insurance May Cover
If a consumer files a lawsuit against your company, you will be on the hook for legal fees to defend yourself. Regardless if you are found liable or not, defense costs can be astronomical. Lawyer fees alone can be $100-$400 per hour, depending on location, expertise, and experience in the field.
Additional litigation costs include:
- Court filing, processing fees, and evidence
- Late fees
- Hiring experts in the industry
- Travel expenses for yourself and legal team
With product liability insurance, you can alleviate costs and make sure your business isn’t deterred by the financial strain.
Product Liability Insurance From Canopy
The risks are real and Insurance Canopy is here to help your business with its product liability needs. As a national insurance brokerage with more than a decade of supplier-to-retail experience, you can be sure that your coverage is customized for your business—big or small.
The fines Conagra faced only take up one-tenth of one percent of their current $8 billion market. Could your company absorb a similar detrimental financial loss? On the bright side of the spectrum, there’s product liability insurance to offset the debilitating lawsuit bills. Protect your business from the worst case scenario and ensure your livelihood isn’t wrecked.
Check out our latest product liability insurance blog here.
Learn More About Product Liability Insurance