Why traditional insurance thinking may no longer be enough
Australia's meat and poultry industry faces an evolving risk landscape. Emerging threats including cybercrime, biosecurity events, product contamination, regulatory scrutiny and supply chain disruption are creating exposures that can significantly impact profitability, reputation and business continuity. For many businesses, the key question is whether their insurance program is designed to respond to the risks they face today.
The new risk environment
Meat and poultry businesses operate within complex, interconnected supply chains where a single disruption can create significant financial consequences. Disease outbreaks, cyber incidents, equipment breakdowns and regulatory actions can affect production continuity and business performance.
Product recall: a multi-million-dollar exposure
Product recalls can generate substantial direct and indirect costs, including product withdrawal, customer notification, crisis management, brand damage and lost revenue. Review whether existing product liability and recall policies adequately address these exposures.
Business interruption is not just a property risk
Modern business interruption losses increasingly arise from non-property events such as disease outbreaks, supply chain disruption, cyber incidents and utility failures. Insurance structures should reflect these changing realities.
Governance matters more than ever
Insurers increasingly assess governance, biosecurity management, cybersecurity controls, incident response planning and executive oversight when evaluating risk. Strong governance can improve resilience and insurance outcomes.
Common Coverage Gaps
Businesses should regularly review product recall, cyber liability, environmental liability, directors and officers liability, machinery breakdown and supply chain interruption coverages to identify potential gaps.
Looking ahead
The most resilient organisations will combine proactive risk management with a strategic insurance program. Insurance should be viewed as part of a broader business resilience framework rather than a compliance exercise.
The contents of this publication are provided for general information only. Lockton arranges the insurance and is not the insurer. While the content contributors have taken reasonable care in compiling the information presented, we do not warrant that the information is correct. The contents of this publication are not intended as a legal commentary or advice and should not be relied on in that way. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content in this publication.
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