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.

Such incidents are increasingly common. When they occur they can attract media interest with potentially disastrous impact on the public’s confidence in the affected product or brand name. Considerable costs can be incurred in recalling, replacing or destroying the contaminated product, and in rebuilding confidence.

Many times however the long term costs (e.g. loss of profits, brand rehabilitation and the loss of a major customer) are even more substantial and can hit the company’s balance sheet.

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.

The cover comprises four parts:

  1. Accidental Contamination
  2. Malicious Product Tampering
  3. Governmental Recall
  4. Product Extortion

What is Covered?

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A.I.S. Insurance Brokers Pty Ltd
137 Moray Street
South Melbourne 3205
Victoria Australia
Telephone +61 3 8699 8888
Facsimile +61 3 8699 8899