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 insurers 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 importers limited exposure to food regulatory enforcement action.
Whether one purchases full or limited indemnity coverage, both include the following services and payments:
Full indemnity rejection coverage is available for all shipments seeking entry into the USA.
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:
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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