In the end, the calculation on insurance costs of any kind can be a matter of common sense, as Nelson sees it.
“You weigh the value of the company against the cost of the insurance,” he said. “If you make $100,000 in salary a year and someone says your auto insurance is a couple thousand dollars, that’s not bad. But $25,000 is ridiculous. It’s the same thing in business. On the liability side, I don’t know if Jensen Farms could have bought enough insurance. Liability there will be in the tens of millions.”
It’s fairly rare for a food safety event to affect hundreds or thousands of growers and shippers, as the Colorado listeria outbreak did with cantaloupe, Nelson said.
“Maybe your efforts should be more focused on the prevention side,” he added.