Product Recall Insurance

In today’s fast-paced and highly regulated marketplace, businesses that manufacture, distribute, or sell products face significant risks when it comes to contamination or product safety issues. A single incident, whether due to accidental contamination, malicious tampering, or a manufacturing defect, can lead to costly recalls, reputational damage, and loss of consumer trust.

Effectively managing these risks is essential to protecting your brand, maintaining customer confidence, and ensuring the ongoing success of your business.

What is Product Recall Insurance?

Product Recall or Contaminated Product Insurance provides cover for recall costs, loss of gross profits and rehabilitation costs following either accidental or malicious contamination (whether actual or threatened).

Adverse publicity and governmental recall are additional triggers which have recently been introduced. Crisis management planning and loss prevention services are also available and will be partly funded by the insurance contract. Specialty response consultants will be made available to advise, and help contain and manage the incidents on behalf of the Insured.

Cover typically comprises of four parts:

• Accidental Contamination
  Accidental or unintentional contamination, impairment or mislabelling of an insured product or any adverse publicity implying such, which occurs during the production process.
• Malicious Product Tampering
  Any actual, threatened, alleged, intentional, malicious alteration or contamination of an insured product so as to render it unfit or dangerous for its intended use.
• Product Extortion
  Threat to commit a Product Tampering for the purpose of demanding ransom monies.
• Governmental Recall
  Food or products can be recalled when it poses a possible pubic health and safety risk to consumers.

A typical Product Recall Insurance policy will provide cover for:

• Pre-Recall Expenses
• Recall Expenses
• Third Party Recall Expenses
• Insured's Loss of Gross Profits
• Increased Cost of Working
• Rehabilitation Costs
• Product Extortion Demand
• Crisis Response Fees
• Adverse Publicity