Contaminated Product Insurance

Contaminated Product Insurance

Contaminated Product Insurance or Product Recall Insurance continues to be a growing market, as clients realise they require greater coverage due to contractual obligations or protection of company brands.

Food and drink, cosmetics, pharmaceuticals, packers and distributors are amongst the most susceptible to product contamination. This can be either accidental or deliberate – through malicious product tampering.

Considerable costs can be incurred in recalling, replacing or destroying the contaminated product, and in rebuilding customer confidence. Long term costs such as loss of profits, brand rehabilitation and the loss of a major customer are also substantial and can hit a business' balance sheet.

What does this Insurance cover?

Contaminated Products 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 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.

What is Covered?

• 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

Contaminated Product Insurance is suitable for manufacturers, processors, distributers and retailers of topical and ingestible products, such as food, beverage, restaurants, cosmetics, pharmaceutical (OTC) and tobacco.

How Coverforce can help

At Coverforce, we're focused on providing you with:

• Professional insurance services
• Comprehensive insurance programs tailored to your individual needs
• Responsive and proactive claims service
• An extremely competitive price structure

Our in-depth understanding of the industry comes from extensive experience in the worldwide market since 1990. Over the years we have earned a reputation for integrity, creative solutions and outstanding service. For you that means real benefits, personal attention and fast claim settlements.

For more information or to arrange cover, please contact us on 1800 986 445 or simply fill out the quote request form below and one of our insurance brokers will get in touch shortly.