Product Contamination

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.


  • 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

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Why Tokio Marine HCC?

Tokio Marine HCC is a leading specialty insurance group with offices in the United States, Mexico, the United Kingdom and Europe, transacting business in approximately 180 countries and underwriting more than 100 classes of specialty insurance. Our products and capabilities set the standard for the industry, and many of our almost 3,000 employees are industry-leading experts. Each of our highly entrepreneurial businesses are equipped to underwrite special situations, companies and individuals, and acts autonomously to deliver effective solutions. 
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Our financial strength ensures our clients will always be protected.

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Our holistic portfolio of products includes more than 100 classes of specialty insurance

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Tokio Marine HCC is part of Tokio Marine, one of the largest P&C insurers in the world

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