Product Contamination

Category: Crisis Management
Group: Specialty Group

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.

Highlights

Malicious product tampering
Accidental product contamination
Adverse publicity
Government recall
Capacity of up to US $10 million
Excess capacity up to US $15 million with excess primary up to US $10 million

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. Coverage is available to restaurants of any size as well as single or multi-location enterprises, including individual groups of franchisees.

Target Insureds

Food and beverage / nutraceutical industry:

Manufacturers / processors
Retailers
Wholesalers
Distributors
Importers

Non-food manufacturers and distributors on an excess of loss basis

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

Crisis Response Services by Stericycle® ExpertSOLUTIONS™

Provider of expert consultants with over a century of combined regulatory and food safety experience
Can execute a recall, i.e. set up a 500 seat call center, recall notifications, product retrieval, process and store recalled products in a modern 400,000 square foot facility, and dispose of recalled items in an environmentally-friendly manner
Leading firm in the field of pre- and post- crisis management, risk mitigation and recall management for the full spectrum of consumer goods
Dedicated 24/7 hotline as the first point of contact for policyholders looking to report a product contamination incident
Provider of vital assistance during the critical early hours following the discovery of a product contamination
Management of over 5,000 product recalls globally
ExpertINSIGHTS™ reports providing timely information on a variety of topics regarding the management of risks associated with the manufacture and distribution of consumer products
10% of premium for pre-crisis planning and consulting

Restaurant Recovery - Foodborne Illness

Restaurant recovery insurance offers business interruption coverage from foodborne illness, accidental contamination, malicious contamination or product extortion.

Product Liability

Tokio Marine HCC insures product manufacturers and distributors with a broad spectrum of exposures.

Why Tokio Marine HCC?

Tokio Marine HCC is a leading specialty insurance group with offices in the United States, the United Kingdom, Spain and Ireland, 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.