Business interruption is considered the biggest threat by half of all food and beverage makers, yet companies are leaving themselves exposed to financial losses, a WTW survey shows.

The latest WTW Global Food and Beverage Risk Report, based on a survey of 400 senior decision-makers, found 29% have no cover for business interruption.

That is despite 48% saying business interruption is the biggest internal risk to their success. 

WTW industry lead for Australasia Ian Poustie says the food and agriculture industry is exposed to a widening range of disruptive forces.

“Many of the challenges food and beverage firms face today are of a different order from those they have overcome before,” he said. “It’s a good idea to reassess the critical issues in the business, areas of focus, how they can manage the key risks they face, and where they might need more protection.”

Perennial risks such as product recalls and factory or warehouse fires have been compounded by drought and natural disasters, trade disputes and regulatory changes, he says.

Navigating potential disruption has become “the new normal” amid global conflicts, climate change and the cost-of-living crisis, and WTW found nearly half of food and beverage companies review business continuity plans every six months, while almost one-third do so quarterly.

“That is a positive result suggesting the industry recognises the increased threats and is responding with urgency to strengthen preparedness,” the global broker said.

WTW also recommends food and beverage makers consider environmental impairment liability insurance, which can cover costs related to historic and gradual pollution and is normally excluded from general policies. 

See the report here.