Expert advice crucial to perishables insurance

In the time-sensitive perishable industry it’s imperative that unexpected interruptions are covered by short-term insurance, says Eikos Risk Applications’ Rod Isaacs. And expert advice is equally crucial, in his view. “When it comes to crops, they should ideally be exported 8-9 days after harvesting for the crop to arrive at destination in pristine condition,” says Isaacs. When dealing with perishables – which can include medicines, test samples and plastics – a multitude of unexpected delays can arise, he says. These range from human failure to operate temperaturecontrolled atmosphere equipment properly to late arrival or departure of goods due to port delays. And although times are tough economically and insurance is seen as a grudge purchase, Isaacs says the risk of exposing a business to financial and liability costs is much higher than the cost of a monthly premium. He also advises that a higher excess can reduce monthly costs but that when a claim occurs, it will be deducted from the overall settlement. “It is wiser to opt for affordable monthly cover without the stress of worrying about a high deductible in the event of a claim,” he says. Choosing an insurance broker who is able to work with a broad range of likely scenarios and ensure the right coverage should also be top priority, he says. “A broker should provide expert risk analysis of a business and provide simple, easy-to-follow policy wording. “Make sure that they are aware of any material changes to your business so that your cover is constantly monitored and developed to meet the needs of your business,” says Isaacs.