Coverage
Contaminated products insurance is specifically designed for manufacturers of products used for human consumption such as food & beverage, pharmaceutical and cosmetic manufacturers and retailers.
Nowadays, the frequency and severity of product recalls have increased due to higher volume, regulatory, inflation, and complex supply chains. A publicized recall can harm a company's reputation, affecting sales. Although manufacturers invest in quality assurance, but the risk remains.
Contaminated Products Insurance can provide crisis management support and protection against financial losses, including decontamination costs and brand reputation damage.
Coverage consists of four key components (various versions of definition):
- Accidental Contamination an inadvertent or unintentional contamination, Mislabelling or Packaging Defect of an Insured Product(s), that occurs during or as a direct result of its production, preparation, manufacture, packaging or Distribution
- Malicious Product Tampering any actual or threatened intentional, Malicious and wrongful alteration or contamination of the Insured Product(s) so as to render it unfit or dangerous for its intended use or consumption, whether or not by an employee of the Insured.
- Product Extortion any threat or connected series of threats to commit Malicious Product Tampering of the Insured Product(s)
- Governmental Recall Food or products can be recalled when it poses a possible pubic health and safety risk to consumers.
What expense/fee are 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
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