Companies rely on the quality of their product to protect product brand and company reputation. Accidental product contamination, malicious product tamper or an extortion demand can rapidly cause considerable financial hardship to a company.
Product recall coverage provides package of measures to ensure that the damage to businesses is minimised by enabling the company to respond swiftly to the need to take appropriate action.
What is it?
Product contamination insurance reimburses costs incurred to recall and replace a product in the market place with a safe one. It also provides expert assistance and advice during this process.
Whilst product liability insurance includes some protection, it does not always reimburse the insured for their own costs incurred to withdraw and replace a product. Product recalls are occurring more frequently and often receive media attention. A poorly handled product recall can have a catastrophic impact upon brand reputation, an organisation’s assets and even their ability to continue trading.
Park Insurance are experts in this area and takes a flexible approach when understanding clients’ needs. Our award winning claims.
- Policy coverage
- Accidental contamination (up to USD25m / GBP12.5m)
- Malicious product tamper/product extortion (up to USD50m /GBP25m)
- Recall costs
- Pre-recall expenses
- Business Interruption / loss of gross profits
- Rehabilitation costs
- Third-party recall costs
- Extortion demands
- Cover is on a ‘claims made’ basis and all policies are aggregated
Crisis consultants and 24 hour crisis response line
Our insurers have partnered with a number of crisis consultants that are available to assist policyholders. We introduce them shortly after policy inception and during a crisis they can work on-site with our insured to help pinpoint the source of the contamination or outbreak. In the event of a product recall most companies quickly find themselves immersed in a full scale crisis and our 24 hour crisis response line is available for help and advice.
Our clients fall into two categories.
- Food & drink Manufacturers, processors, distributors and retailers of topical and ingestible products Food, beverage, restaurants, cosmetics, pharmaceutical (OTC), tobacco
- Non food consumer goods, Finished goods manufacturers of consumer products (not component parts) Toy and child-related products, sports and recreational equipment, household appliances, home electrical equipment, garden tools and products, packaging and containers, tools
From the blog
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