For companies of all sizes, product contamination is a loss exposure that cannot be ignored. Contamination, whether the result of mislabeling, supplier issues, pathogens, foreign objects, or simple human error within the manufacturing process, is occuring more frequently in the U.S. and around the world. Companies that fall victim to these types of incidents often incur significant costs in crisis expenses, product value, and in the restoration of profits and brand reputation.
Highlights
- Malicious product tampering
- Accidental product contamination
- Adverse publicity
- Intentionally impaired ingredients
- Government recall
- Capacity of up to US $10 million
- Excess capacity up to US $20 million (minimum attachment point 10M in underlying limits)
Target Insureds
Food and beverage / nutraceutical industry:
- Manufacturers / processors
- Retailers
- Wholesalers
- Distributors
- Importers
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 $650 million, we can provide a customized policy that addresses the needs of the mid-market segment.
The policy offers business interruption coverage back to pre-incident sales and also covers brand name rehabilitation costs. Numerous other additional expenses are covered, including recall costs, incident expenses and crisis management advice.
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
- Pre-Recall and Pre-Contamination Expenses
- Unsubstantiated Retailer Costs
- Increased cost of working
- Extortion costs
- Government recall, Intentionally Impaired Ingredients 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
- Forensic Accounting and Claims Services
- Multi-year policy periods available for select risks at a discounted rate
- No self insured retention applying to crisis consultant expenses or extortion costs
- Up to 10% of the Gross Written Premium can be used for preventative services provided by Sedgwick brand protection
crisis response by sedwick brand protection
If managed poorly, a recall or contamination event can have devastating consequences on a company’s reputation and bottom line. Sedgwick complements the policy coverages and are available to our policyholders to provide pre- and post- recall management and consulting services 24/7. Having handled over 5,000 recalls for their clients Sedgwick is a market leader in the recall space and can not only coordinate but also execute a recall for our policyholders. Sedgwick’s services are even available for pre-incident planning and prevention and our policyholders can utilize up to 10% of the policy premium to engage their services.