For companies of all sizes, product contamination is a loss exposure that cannot be ignored. Contamination, whether the result of criminal acts or simple human error, is occurring with alarming frequency in the U.S. and around the world. Companies that fall victim to these types of incidents often incur staggering costs in damage control and in the restoration of profits and brand reputation.
Summary of Coverage
Our policy is designed to provide critical coverages for contamination incidents and related exposures not contemplated under the scope of traditional general liability or product extortion insurance. Because we specialize in small to medium size food and beverage risks with sales of up to US $500 million, we can provide a customized policy that addresses the needs of the mid-market segment.
Tokio Marine HCC’s policy provides coverage to help companies deal with the financial consequences of a product contamination crisis, including reimbursement for recall expenses, value of contaminated products, third party recall expenses, increased cost of working, extortion costs, loss of gross profits, rehabilitation expenses and crisis consultant expenses from a retained recall specialist, Stericycle® ExpertSOLUTIONS™.
Standard coverages:
- First party and customer recall-related expenses, including but not limited to, laboratory analysis, transportation, radio, internet and television announcements, and third-party recall expenses
- Loss of gross profit for a period of up to 18 months
- Rehabilitation expenses
- Value of contaminated products
- Crisis response and consultant expenses, including public relations and recall consultants
- Increased cost of working
- Extortion costs
- Government recall and adverse publicity at full policy limits
- No self insured retention applying to crisis consultant expenses or extortion costs
Optional coverages / services:
- Government determination (enhanced)
- Comprehensive product refusal
- Customer loss of gross profit for a period of up to 18 months
- Third party expense indemnity
- Customer rehabilitation
- Multi-year policy periods available for select risks at a discounted rate
- No self insured retention applying to crisis consultant expenses or extortion costs
