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Custom Coverage Options

As a result of our specialization and in-depth knowledge of the food regulatory environment, from both international and national trading perspectives, the insurers supporting our programs have given us authority to offer insurance coverage involving the following risk areas:

I. Insurance Coverage For Transportation-Related Losses On All Imported And Exported Food Products.

This represents an extremely broad coverage that reimburses the policy holder for losses resulting from a wide array of transportation perils, including but not limited to, theft of partial contents, theft of entire shipments, any type of temperature abuse damage caused during the period of transit, all losses stemming from a vessel sinking, stranding, burning, and general average declaration, rough handling, temperature mismanagement incidents, and other transportation related losses. Our policies provide coverage the moment the policyholder comes on risk overseas up to delivery to the insurer’s first designated warehouse.

II. Insurance Coverage For Rejection And Detention Enforcement Actions.

When food products are imported into the U.S.A., Canada, and/or the E.U. there is always the possibility the product will be sampled by the food regulatory agency and found to be violative. A violation can result in a partial or entire shipment refusal and/or destruction. An importer can suffer a loss ranging from 15% up to 100% of the value of the shipment.  Our coverage has been designed to meet the commercial realities of the day and is routinely updated to meet the changing regulatory environment. Full indemnity coverage may be secured which would re-imburse the importer for the full value of the refused lot. Alternatively, limited indemnity coverage may be secured at a fraction of the cost. This type of coverage would indemnify the importer for a specific lump sum, serving to cover the importer’s limited exposure to food regulatory enforcement action.

Whether one purchases full or limited indemnity coverage, both include the following services and payments:

  1. Our associate company, International Cargo Loss Prevention, Inc., provides appeal services before the Food Regulatory Agency so that all regulatory interventions are properly challenged and mitigated.
  2. Warehousing costs beyond the first (30) days are re-imbursed to the insured.
  3. All laboratory testing commissioned by ICLP during the appeal process is paid by the insurer.
  4. HACCP verification and review is conducted by ICLP and recommendations are made if HACCP Certification and "paper trails" need to be improved upon.

III. Insurance Coverage In The Event Of Domestic Seizure Of Product.

Meat and poultry are regulated by the USDA, unlike seafood and all other food products, which are regulated by the FDA. Because the USDA operates in a much different manner than the FDA, our coverage has been uniquely designed for the meat trade.

  • Meat imports from all countries certified to export meat into the USA of Canada, excluding Australia and New Zealand

    Full indemnity rejection coverage is available for all shipments seeking entry into the USA.

     

  • Meat imports from Australia and New Zealand

      Provided always that insurance coverage purchased in Australia and New Zealand includes rejection coverage for traditional violation types and includes extended rejection coverage which provides a minimum liability limit of $1,000,000 responding to microbiological, chemical contamination, and pesticide residue claims, the scope of our coverage is as follows:

    1. A limit of $1,000,000 which would respond in excess of the $1,000,000 extended rejection coverage provided by Australian and New Zealand insurers, if the primary policy provided from
      Australia and New Zealand provides limits in excess of the $1,000,000 limits noted above. It is understood that $1,000,000 provided herein would be in excess of the primary limits of liability embedded within the coverage purchased on a C.I.F. basis.
    2. It is important to recognize that the primary limits covered in Australia and New Zealand are issued for the benefit of a specific exporter. Hence, there is the possibility the primary limit could be exhausted as a result of claims being lodged by numerous importers against the same suppliers policy. Thus, the $1,000,000 coverage provided by this program would respond to the specific product owned by the importer, and would be in addition to the suppliers policy limits.
    3. Additionally, the $1,000,000 limit would also respond to claims stemming from a detention, seizure, or condemnation action initiated by the USDA for violations of microbiological, chemical contamination, and/or pesticide residue findings on shipments that are still in their import carton and identifiable back to their imported lots, which have been initially passed by the USDA for entry into the U.S.A. This coverage is limited based on time constraints. The policy shall respond to claims noted above for all product up to (45) days after the goods are received at the first cold store, or (45) days after the goods have been released into U.S. commerce, whichever shall first occur. In the event other primary coverages held by the importer would cover such a loss, it is agreed the coverage and limits provided herein shall be considered in excess of the primary coverage.

IV. Insurance Coverage In The Event Of Domestic Seizure Of Seafood Production.

Once goods are passed into U.S. commerce by the FDA, there is always the possibility that an FDA random domestic inspection will reveal product to be violative or adulterated. When this occurs, product will be placed on mandatory hold or stop-sale and the FDA will contact the U.S. District Attorney in the location where the goods are found, who will actually file suit in Federal Court to seize the product and seek to have the product destroyed.

Seizures most commonly occur shortly after importation. For example, the FDA may have passed the goods without physical inspection into the country, but shortly thereafter, realized they should have inspected the product, or the FDA may subsequently become aware of similar product from the same packer imported through other FDA districts which was found violative.

When product is passed by the FDA and is subsequently domestically sampled by the FDA within (30) days of the product's release, and is found to be violative, our coverage will provide up to $10,000 indemnity.  This indemnification may be for legal services to challenge and mitigate the domestic seizure or provide the payment in a lump-sum fashion to offset the cost of re-exporting the product.

This seizure coverage is embedded within our rejection coverage, at no additional cost to the policyholder. This coverage may also be expanded and purchased on a ‘stand alone’ basis to protect many imported parcels when only transportation coverage (referred to as "Marine Only" coverage) has been purchased.

During the course of a potential seizure, MMIB provides free consulting services which are designed to allow the importer to avoid the seizure or to more effectively challenge the seizure in the event it cannot be avoided.

V. Insurance Coverage For Transportation And Storage-Related Loss For Product Moving Within The Boundaries Of The U.S.A. And Canada, For All Modes Of Transportation And For Product Stored In Public Cold Stores Throughout The U.S.A., Canada And Elsewhere.

Even if companies are not importers or exporters, many wholesalers, distributors, and brokers of seafood routinely hold and ship product domestically throughout North America, including Mexico. Our coverage has been designed to respond to all types of transportation and storage-related losses, including theft, hijacking, temperature abuse, collision, etc.

VI. Insurance Coverage For Product Losses Which Occur During The Processing Of Product.

It is customary in the worldwide lobster trade to purchase product somewhere overseas, have it processed locally, then ship it to its final destination. Our coverage is designed to support this type of exposure to loss from product acquisition, through processing, storing and shipping.

Product damaged during processing is a typical exclusion contained in most storage policies. Therefore, we provide this coverage for the purpose of eliminating any gaps in coverage. Of course, processing normally results in a loss of weight based on the yield of the finished product. This represents a customary, inherent loss which is not insurable. However, if the goods undergoing processing suffer a loss due to windstorm, flood, theft, fire, etc., this coverage will respond to your claim.

              

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Corporate Headquarters
7620 Royal St. East #201B
P.O. Box 680758
Park City, UT  84068-0758
Tel:      435-649-3737
Fax:     435-649-8880
West Coast Office
10101 Slater Avenue, Suite 115
Fountain Valley, CA  92708
Tel:     714-593-6545
Fax:    714-593-6445
 
East Coast Office
2 Rafferty Road
Stoneham, MA  02180
Tel:    781-438-7799
Fax:  781-438-0033
 

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Copyright 1998  Last modified: April 17, 1998