Insuring against food fraud

Helpful Facts

  • Food fraud costs $40-50 billion annually with incidents rising 10% in 2024, making specialized insurance essential for import/export businesses.
  • Standard commercial insurance excludes fraud losses - businesses need specialized coverage including product recall, marine cargo, and crime insurance.
  • Insurance costs vary widely from $300-$1,300 annually for small operations to $0.55-$1.77 per $100 of invoice value for export credit insurance.
  • Prevention strategies reduce premiums - supply chain verification, quality testing, and blockchain tracking lower both fraud risk and insurance costs.
  • Claims require specific documentation including lab results, supply chain records, and regulatory correspondence, with emergency recalls getting 24-48 hour pre-approval.