"Liability insurance proposed for food industries"
www.chinadaily.com.cn:
July 3,2014
The future of
food safety in China will not simply include harsher fines and penalties for
trespassers of FDA regulations. As the review of a draft amendment to the Food
Safety Law at the end of June demonstrated, another focus will be getting the
food industry to look into liability insurance programs. The safety benefits would accrue to the consumer,
especially if the government requires high risk industries (ex. meat and dairy
corporations) to purchase insurance for their products- thus subjecting the
companies to further insight from their insurers. On the same note, if the
government were to require liability insurance, consumers could face increased
prices since companies would be paying more for insurance. For now, China FDA
is promoting insurance plans among select food companies rather than making it
mandatory because of cost concerns.
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