Food Newsletter from Valvano Insurance Agency.

1. VIA - Food for Thought, 1 - Copyright © 2019, Valvano Insurance Agency Inc.
FoodforThought
In This Issue
September 2019The newsletter for today’s food production, processing, and distribution insurance market.
Quick Bites
FDA Safety/Recalls
OSHA Regulations
Foodsafety.gov
CDC Food Safety
USDA Health & Safety
HACCP System Info
908-862-4047
Beef Recall
Product Recall
Planning
Product Liability
Insurance
One More Thing...
Class II Recall; Health Risk: Low
WASHINGTON, Aug. 31, 2019 – American Beef
Packers, Inc., a Chino, Calif. establishment, is
recalling approximately 24,428 pounds of raw beef
products that are deemed unfit for human con-
sumption, the U.S. Department of Agriculture’s
Food Safety and Inspection Service (FSIS) an-
nounced today.
FSIS inspection personnel retained the carcass and
collected a sample for further analysis. Prior to test
results being received, the carcass was erroneously
released and further processed into raw intact and
non-intact beef products, which were distributed in
commerce.
The raw beef items were produced and packaged
on Aug. 21, 2019. The following products are sub-
ject to recall:
Bulk pack combo bins containing
“AMERICAN BEEF PACKERS 85 BONELESS BEEF CHUCKS”
with LOT NO.110 and BIN No. 85 and BIN No. 86.
Bulk pack combo bins containing “AMERICAN BEEF PACKERS
90 BONELESS BEEF” with LOT NO. 110 and BIN No. 81, BIN
No. 82 and BIN No. 83.
Bulk pack combo bins containing “AMERICAN BEEF PACKERS
85 BONELESS BEEF” with LOT NO. 25-110 and BIN No. 84 and
LOT NO 110 and BIN No. 88.
Cases containing “AMERICAN BEEF PACKERS RIBEYE 8/10 #1”
with codes BT190821-1178, BT190821-1185, BT190821-1188,
BT190821-1190, and BT190821-1194.
66.2-lb. case containing “AMERICAN BEEF PACKERS RIBEYE
10 UP #1” with code BT190821-1186.
Bulk pack combo bin containing “AMERICAN BEEF PACKERS 90
BONELESS BEEF SIRLOINS” with LOT NO. 24-110 and BIN No.
80.
Cases containing “AMERICAN BEEF PACKERS TERDERLOIN 4
UP” with codes BT190821-1160, BT190821-1161, BT190821-1162,
BT190821-1163, BT190821-1167, BT190821-1168, BT190821-
1169, and BT190821-1170.
Cases containing “AMERICAN BEEF PACKERS RIBEYE 10 UP”
with codes BT190821-1187 and BT190821-1192.
Cases containing “AMERICAN BEEF PACKERS TENDERLOIN
3/4” with codes BT190821-1155, BT190821-1157, BT190821-1171,
BT190821-1200, BT190821-1201, BT190821-1202, BT190821-
1203, BT190821-1204, and BT190821-1205.
50-lb. cases containing “AMERICAN BEEF PACKERS DESC:
BEEF FOR FURTHER PROCESSING 75/25” with lot code
08347412719.
The products subject to recall bear establishment
number “EST. 34741” inside the USDA mark of
inspection. These items were shipped to federal
establishments in California and Oregon.
The firm notified FSIS on Aug. 30, 2019 that a
carcass that was pending laboratory results had
been erroneously released and further processed
into raw intact and non-intact beef products.
There have been no confirmed reports of adverse
reactions due to consumption of these products.
Anyone concerned about a reaction should contact
a healthcare provider.
FSIS is concerned that some product may be frozen
and consumers’ refrigerators or freezers or both.
Consumers who have purchased these products are
urged not to consume them. These products should
be thrown away or returned to the place of pur-
chase.
FSIS routinely conducts recall effectiveness checks
to verify recalling firms notify their customers of
the recall and that steps are taken to make certain
that the product is no longer available to consum-
ers.
Consumers and members of the media with ques-
tions about the recall can contact Kari Godbey
Houchens, Regulatory Manager, American Beef
Packers, Inc. at (909) 628-4888 ext. 123.
American Beef Packers, Inc. Recalls Raw Beef Products Deemed Unfit for
Human Consumption
Source: USDA Website 09/18/2019
USDA Recall Classifications
Class I This is a health hazard situation
where there is a reasonable prob-
ability that the use of the product
will cause serious, adverse health
Class II This is a health hazard situation
where there is a remote probabil-
ity of adverse health consequences
from the use of the product.
Class III This is a situation where the use of
the product will not cause adverse
health consequences.

2. VIA - Food for Thought, 2 - Copyright © 2019, Valvano Insurance Agency Inc.
If you are a manufacturer, importer,
distributor, or retailer of consumer
products, you may need to conduct a
product recall in the future.
Experts have shown that one of the best
ways to ensure that a product recall is
effective is to have a recall plan already
in place and to execute the plan as
quickly as possible. A well-thought out,
well-executed recall plan can save lives
and prevent injuries in addition to limit-
ing damage to your company’s brand
and bottom line.
Many recalls at the CPSC begin when a
company follows the law and reports
their product to the CPSC. Other recalls
happen after reports are received from
consumers and other sources. Whatever
the source of the recall, once the CPSC
decides that a recall is necessary, CPSC
staff will expect your company to re-
spond quickly to its requests for infor-
mation and to work closely with a mem-
ber of the CPSC’s Office of Compli-
ance.
The CPSC has compiled resources
to assist companies that manufacture,
import, distribute, retail, or otherwise
sell consumer products. These resources
highlight the issues important to the
CPSC for a firm to incorporate into its
recall plan. Companies should also
carefully review the Recall Handbook
in order to:
become familiar with
their reporting requirements under sec-
tions 15(b) and 37 of the Consumer
Product Safety Act, and Section 102 of
the Child Safety Protection Act, Pub. L.
103-267;
help companies learn how to recognize
potentially hazardous consumer prod-
ucts as soon as possible; and
assist firms that discover they have
manufactured, imported, distributed, or
retailed such products to develop and
implement “corrective action plans” that
address the hazards.
There are also many private firms that
can assist you with creating a recall plan
and/or executing a recall. For your con-
venience, a list of some of these firms is
provided on our Recall Guidance
Frequently Asked Questions
1. Does the CPSC have a model recall
plan?
No. Each product and each industry sec-
tor are unique. We have provid-
ed resources to highlight the issues im-
portant to the CPSC for a firm to incorpo-
rate into its recall plan.
2. Does the CPSC have expedited recall
procedures in place if my company
would like to cooperate in conducting a
voluntary recall?
Yes. The Commission has a program
called the Fast-Track Product Recall Pro-
gram in which a firm reports a product
defect, as required under section 15 of the
Consumer Product Safety Act, and has
the option of immediately (within 20
working days) implementing a recall,
working with Compliance staff. This
program avoids an extensive review and
technical assessment of the potential de-
fect and risk. Staff and the recalling
firm work on notification measures
and the remedy to ensure that the re-
call program is successful and the de-
fect is corrected. Ordinarily in the Fast
-Track Program, no staff findings are
made about whether the product being
recalled has a product defect or is a
substantial product hazard. The Fast-
Track Program is another reason why
it is advisable to have a recall plan
prepared in advance and ready to exe-
cute should a recall become necessary.
3. What is a Corrective Action Plan?
The term "corrective action
plan" (CAP) generally includes any
type of remedial action taken by a
firm. A CAP, for example, could pro-
vide for the return of a product to the
manufacturer or retailer for a cash
refund or a replacement product; for
the repair of a product; and/or for pub-
lic notice of the hazard. A CAP may
include multiple measures that are
necessary to protect consumers. Com-
mission staff refers to corrective ac-
tions as "recalls" because the public
and media recognize and respond
more readily to that description. Please
see the Recall Handbook for more
information.
This communication has been prepared for general informational
purposes only and is based upon the facts and information
presented. This communication does not, and is not intended to,
constitute legal advice and has not been reviewed or approved
by the Commission, and does not necessarily represent their
views. Any views expressed in this communication may be
changed or superseded by the Commission.
Be Prepared: Recall Planning
For the full publication, visit:
Source: CPSC.gov
FoodforThought

3. VIA - Food for Thought, 3 - Copyright © 2019, Valvano Insurance Agency Inc.
What is product liability insurance for
small businesses?
Despite the hard work that small busi-
nesses put in to ensure they manufac-
ture high-quality goods, there is still
the chance that products could fail to
work properly. For example, a chil-
dren's apparel company could produce
clothing that fits improperly and poses
a suffocation hazard, or a food service
business could bake pastries with an
ingredient that triggers a customer's
allergic reaction.
There is always the potential for de-
fects that can result in bodily injury or
property damage - serious risks neither
your business nor customers can af-
ford. That’s why all businesses that sell
products should have product liability
coverage. Find out what product liabil-
ity insurance is and how much your
small business might need:
How does product liability coverage
work?
Product liability insurance isn’t merely
a product guarantee or warranty. It
protects businesses from the fallout
that occurs in the event that a product
causes injury or other damage to third
parties.
Consumers can be harmed by how a
product is manufactured, designed,
marketed or misused. Even if a product
is used incorrectly, your business could
still be liable for any damage that re-
sults
Your business is responsible for mak-
ing things right. Product liability insur-
ance can help protect you in the event
that your business faces a lawsuit. In
2014, there were 58,496 personal inju-
ry/product liability cases – a 20% in-
crease from 2013. One law firm found
the average jury award in product lia-
bility lawsuits in 2012 was $3,439,035,
with the median award totaling
$1,503,339.20. With an increase in claims
and the high cost of lawsuits, product lia-
bility coverage has become all the more
important for small businesses.
Getting hit with a product liability lawsuit
is an expensive and stressful experience.
Product liability insurance covers the legal
fees that could otherwise lead to major
hardship. Also, the insurance covers medi-
cal costs, compensatory and business dam-
ages.
How much product liability insurance does
your small business need?
How much coverage to buy depends on
what and how many products you sell, the
volume of sales and the number of parties
involved in production. As a rule of thumb,
the more output, the greater the likelihood
one of the products could have some type
of defect. As your small business grows,
this could become a bigger concern over
time.
Product liability insurance is a must even if
your role in the manufacturing, sale or dis-
tribution process is marginal. Talk to an
agent today to make sure you’re covered.
One more thing…
Many importers assume that
their foreign manufacturers
share some liability in the
event of a Product Liability
claim in the U.S. This is par-
ticularly so if the foreign man-
ufacturer says they have
a Product Liability policy.
Check that the foreign manu-
facturer’s policy has an en-
dorsement specifically stating
it covers Product Liability
claims in the U.S. courts. Oth-
erwise, that foreign Product
Liability policy is useless to
the importer.
Read more about this emerg-
ing topic at:
products-liability-
insurance.com
Protecting Your Customers and Reputation: Product Liability
Coverage
Highlight:
Product Liability
For the full publication, visit:
Source: Nationwide
FoodforThought