Farm to Shelf: Managing Risk Across the Food Supply ChainIf your organization plays a role in any part of the food supply chain, it helps feed communities. That responsibility also comes with significant risk, impacting your bottom line, your workforce, and even food affordability at a broader level. When food production companies manage risk effectively, the benefits extend to everyone.
Managing Worker Injury Risks
According to the National Safety Council, the 15 most dangerous industries include agriculture, transportation/warehousing and manufacturing.
- The agricultural, forestry, fishing and hunting sector is the most dangerous in terms of the worker death rate, with 21 worker deaths per 100,000 workers.
- The transportation and warehousing sector is the most dangerous in terms of the days-away-from-work (DAFW) rate, with 210 DAFW per 10,000 workers.
- The manufacturing sector is the fourth most dangerous in terms of the total recordable incident (TRI) rate, with 332,600 incidents in 2024.
The food industry can be dangerous for workers who face threats from heavy machinery, extreme heat and exposure to harmful substances, among other risks.
Employers in the food sector can help minimize the risk of worker injuries with strong safety programs, written policies, proactive OSHA compliance, worker training and personal protective equipment, as well as a company culture that prioritizes worker safety.
What about insurance? A strong workers’ compensation program can provide for workers while helping employers control costs.
Managing Transportation Risks
In 2022, the most recent year for which FMCSA data is available, there were 503,000 police-reported crashes involving large trucks, including 5,279 fatal crashes and 114,000 injury crashes.
Crashes can lead to worker injuries, vehicle damage, loss of cargo, and operational disruption. The potential for liability is the costliest exposure. Rising litigation expenses and nuclear verdicts have made it difficult to predict how much a lawsuit could cost, and the transportation sector has been significantly impacted. According to Marathon Strategies, there were 135 nuclear verdicts of $10 million or more in 2024, a new record, with a mean verdict of $51 million, up from $44 million in 2023. Some states, including California, Florida and Texas, see a particularly large number of nuclear verdicts.
For food distributors, motor traffic accidents are a major concern. Transportation risks extend through other areas of the industry as well, such as when food growers move equipment on public roads. These risks can be mitigated with rigorous driver screening, well-structured safety programs, and investments in driver safety technologies, including AI-powered vehicle monitoring systems.
What about insurance? In addition to robust commercial auto insurance, businesses may need umbrella insurance to boost liability coverage limits and inland marine insurance to cover goods and equipment in transport.
Managing Contamination Risks
Delish says it covered 130 major food recalls in 2025. These recalls included ready-to-eat pasta that was contaminated with Listeria and linked to six deaths, milk that was recalled due to contamination with chemical cleaning agents, and butter that was recalled because of fecal contamination.
Food contamination can spark expensive recalls, lost product, regulatory fines and erosion of consumer trust. In some cases, such as the investigation into Blue Bell Creameries, company executives may even face criminal charges.
Contamination can occur at any stage of food production, starting with pesticide risks on farms and continuing through manufacturing, distribution and sale. Strong safety practices and regular testing can help keep the food supply safe and reduce risk.
What about insurance? Food companies can benefit from both food product liability insurance and food recall insurance.
Managing Crime Risks
Food Shippers of America explains that cargo thieves want goods they can sell easily and without detection, and this makes food and beverage shipments a top target. Thieves may target entire trucks, or they may pilfer small amounts. Cargo thieves may also use deceptive tactics like impersonation to carry out their crimes.
In one scenario, thieves stole 12 tons of KitKat chocolate bars, or 413,793 bars, according to CNN. In separate incidents, CNN reports that thieves stole 40,000 oysters, $400,000 worth of lobster, and crabmeat.
Food manufacturers and distributors can manage their crime risks with strong security measures. In addition to keeping cargo secure while in transit, food companies also need to pay attention to cybersecurity and fraud detection.
What about insurance? Food companies can benefit from cargo insurance as well as cyber and crime insurance policies.
Managing Risks from Mother Nature
Disasters resulted in global agricultural losses of $3.26 trillion over three decades, according to the Food and Agriculture Organization of the United Nations.
Fires, storms, floods, blights and pests have threatened food production for thousands of years, and the threats remain. For growers, natural disasters and pests can destroy crops, leading to disruption for companies further down the food supply chain. Natural disasters are also a threat to manufacturers, warehousers, distributors, and retailers.
What about insurance? In addition to property insurance, food growers can benefit from crop insurance.
Whatever your role in the food supply chain, Heffernan Insurance Brokers can help you manage your risks. We offer risk management and insurance programs for growers, packers, manufacturers and distributors. Learn more.
