In the food and beverage industry, few things are more costly—or reputation-damaging—than contamination during transit. Perishable goods face constant exposure to fluctuating temperatures, poor handling, and shipping delays. Even a minor oversight can lead to spoilage, product recalls, or legal disputes.
According to the FDA, nearly 48 million Americans experience foodborne illnesses each year, and many cases trace back to contamination during storage or transportation. For businesses moving food products across long distances, maintaining quality and safety isn’t just good practice—it’s a legal obligation.
The big question is: when contamination happens, who’s liable
Who Is Liable for Food Contamination in Transit?
Liability for food contamination depends on where the breach occurred and who was responsible for maintaining product integrity at that point in the supply chain.
In most cases, there are three main parties involved:
1. The Shipper or Manufacturer
If contamination is traced back to improper packaging, inadequate labeling, or poor pre-shipment storage, the shipper is typically held responsible. Manufacturers must ensure that products leave their facilities in compliance with food safety standards like the Food Safety Modernization Act (FSMA) and Hazard Analysis and Critical Control Points (HACCP) requirements.
2. The Carrier or Freight Company
When contamination occurs during transport—due to temperature control failures, cross-contamination from other cargo, or unsanitary conditions—the carrier may be liable. Under the Carmack Amendment, carriers in the U.S. are legally responsible for the actual loss or damage of goods during interstate transit, unless they can prove the contamination wasn’t their fault (for example, caused by a shipper’s instructions).
3. The Receiver or Distributor
If the goods arrive in good condition but become contaminated during unloading, storage, or internal handling, the receiver may share or assume liability. Proper documentation of product condition upon delivery is essential to establish where responsibility begins and ends.
The Role of Contracts and Documentation
Liability often comes down to the fine print. Contracts between shippers, carriers, and receivers typically define who’s responsible for what during each stage of transit.
A few critical documents that help establish liability include:
- Bills of Lading (BOLs): Identify ownership and responsibility for the shipment.
- Temperature Logs: Provide proof of compliance with cold chain requirements.
- Inspection Reports: Document product condition at each transfer point.
- Cleaning Certificates: Verify that containers or trailers were sanitized before loading.
Without this documentation, it becomes much harder to prove who was at fault—or to get reimbursed through insurance.
Common Causes of Food Contamination in Transit
Even with the best logistics partners, contamination risks can’t be completely eliminated. Some of the most common causes include:
- Temperature fluctuations: When refrigerated containers (reefers) fail or power is lost, bacteria can grow rapidly.
- Poor handling practices: Rough loading, unclean equipment, or mixing raw and processed foods in the same trailer can lead to contamination.
- Packaging failure: Damaged seals, punctured containers, or compromised materials allow bacteria or moisture to enter.
- Cross-contamination: Residue from previous cargo or chemical exposure can taint food shipments.
- Extended transit delays: Stalled shipments—often from port congestion or weather—can push products past their safe shelf life.
Understanding these risks helps businesses build stronger preventive systems—and better defend themselves in case of a claim.
How Food Contamination Claims Work
When food contamination occurs during transit, quick action can make all the difference in recovering your losses.
Step 1: Notify Your Insurer Immediately
As soon as you detect potential spoilage or contamination, contact your insurer. Early notice allows them to guide you through proper documentation and mitigation steps.
Step 2: Collect Evidence
Gather all relevant materials, including temperature data, inspection records, bills of lading, and photographs. The more detailed your evidence, the faster and smoother the claims process will be.
Step 3: Inspection and Verification
An adjuster or independent inspector may be assigned to verify the cause and extent of the contamination. This helps confirm liability and determine coverage.
Step 4: Submit the Claim
Provide all supporting documentation and claim forms that outline shipment details, cause of contamination, and financial losses.
Step 5: Review and Settlement
Once verified, settlement is based on the insured value of the spoiled goods. Comprehensive cargo or stock throughput insurance ensures your business isn’t left paying out of pocket for losses.
How to Protect Your Business From Food Contamination
Preventing contamination isn’t just about safety—it’s about profitability. Here’s how food businesses can protect themselves before, during, and after shipment:
1. Vet Your Carriers
Work only with carriers who follow strict food safety protocols and can provide temperature logs, cleaning certificates, and FSMA compliance records.
2. Use Temperature-Controlled Technology
Modern reefer systems with real-time monitoring alert you to temperature deviations immediately—allowing you to intervene before product loss occurs.
3. Document Everything
Maintain detailed shipment records, including conditions at loading and unloading points. Good documentation strengthens insurance claims and helps identify weak points in your logistics process.
4. Secure the Right Insurance Coverage
A standard freight forwarder’s policy may not be enough. For full protection, consider ocean cargo insurance or stock throughput insurance (STP), which covers your goods from origin to final destination.
Coughlin Insurance Services can help tailor coverage that includes spoilage, contamination, and temperature deviation risks—filling the gaps left by carrier liability limits.
5. Train Employees on Food Safety Standards
Human error remains one of the biggest causes of contamination. Regular training on handling, storage, and documentation practices helps reduce risk at every step.
Real-World Example: When Documentation Saves the Day
A mid-sized seafood distributor once faced a major loss when a refrigerated truck broke down en route to a grocery chain. The load’s temperature rose above safe limits, and the retailer refused delivery.
Because the distributor had temperature monitoring records showing the exact time of failure and clear proof that the truck’s cooling unit malfunctioned, the carrier’s insurance accepted liability—and the distributor was fully reimbursed.
Without those logs, proving who was at fault would have been nearly impossible.
FAQs: Food Contamination Liability
What if contamination occurs during international shipping?
International food shipments are subject to separate maritime and customs laws. Having a global cargo policy helps ensure protection across borders, especially for perishable exports.
Is the carrier always responsible for spoiled food?
Not always. If the shipper failed to package goods correctly or did not specify temperature requirements, the carrier may not be liable.
Can insurance cover both spoilage and business interruption?
Yes—comprehensive policies like stock throughput or business interruption insurance can cover both physical losses and the income you lose as a result.
Protect Your Food Shipments With Coughlin Insurance Services
Food contamination in transit can cripple a business—but with the right preventive measures and insurance coverage, you can keep operations running smoothly even when the unexpected happens.
Coughlin Insurance Services has decades of experience helping food manufacturers, distributors, and logistics providers secure the coverage they need. From contamination claims to cargo recovery, our team understands the complex risks of the food supply chain and how to protect your bottom line.
Get a quote today or contact us to learn more about coverage options for your business.