When a business acquisition occurs, it presents an opportunity to reassess insurance arrangements and ensure coverage reflects the true scale of operational risk.
Following a recent acquisition, a large Australian meat manufacturer engaged Gallagher to review its insurance program. Our specialists conducted a comprehensive assessment of coverage adequacy, risk exposures and insurer capacity, delivering an integrated insurance solution that strengthened protection and reduced premiums.
Gallagher has considerable expertise as the insurance broker for a number of large meat processing accounts and a well-established process for assessing the business risk and protection needs.
Uncovering risk exposures and insurance coverage gaps
Our first priority was understanding the extent of the risks the business needed to manage. This review quickly identified that the existing insurance program lacked adequate liability limits for property losses, when assessed against the potential loss scenarios at the primary meat processing facility.
Our in-depth insurance program review involved:
- Property valuation. We commissioned an updated property valuation by an independent professional across the property portfolio to ensure accuracy of assigned sums insured values and replacement values.
- Property risk survey report. We undertook a comprehensive risk survey to enable insurers to properly evaluate risks and set capacity limits.
- Business interruption review. We tested worst-case loss scenarios to ensure limits and indemnity periods reflected realistic downtime and recovery timeframes.
The Gallagher consultative risk-led approach
For Gallagher's food production specialists, placing insurance is only the final step. A key differentiator in our approach is the depth of consultation, analysis and risk insight that shapes the solution long before the market is approached. The strategic solutions were developed through the following three key stages.
1. Consultation
We held detailed discussions and Q&As with the business managers to build a complete picture of their operations and risk exposures, including premises, plant and equipment, production processes and product handling.
We also reviewed contractual obligations across the supply chain, including suppliers, service providers and third-party contractors — every touch point and every entity involved, to ensure all risk transfer arrangements were identified and aligned.
2. Analysis
After examining all the business and risk factors involved, our team advised on strategies to limit risk exposures and potentially reduce premiums by improving key business operational practices.
Key risk areas included property damage, product and public liability, equipment breakdown, business interruption, cyber security and exposures from labour hire firms and contractors, with additional optional policy covers considered.
3. Integrated insurance solution
Our goal was to deliver comprehensive coverage at optimal pricing, aligned to the scale and complexity of the business. Leveraging Gallagher's global insurer network, we accessed both domestic and international markets to secure the necessary capacity.
A number of key risks involved the use of expanded polystyrene (EPS) for temperature control, for which we were able to source coverage via targeted insurance market engagement from specialist insurers in the London and Singapore insurance markets.
Strategic risk management enables measurable premium savings
By applying Gallagher's structured risk analysis, consultation and advisory process, the business achieved stronger coverage aligned to real loss scenarios, while also realising significant premium reductions.
Gallagher's food production specialty team of industry experts draws on the Gallagher legacy of more than 75 years in servicing food production businesses, which provides a deep understanding of the risks associated with the industry and how to manage and mitigate them.
We support some of Australia's most recognised food brands as well as smaller producers nationwide.
We work to explore all insurance options available to meet the business needs, provide a range of pricing and premium funding options, and provide expertise and commitment to ensure that clients are appropriately protected against all insurable risks.
