Product Recall insurance
Product Recall insurance reimburses costs incurred to recall and replace a product in the marketplace with a safe one. It also provides expert assistance and advice during this process.
Product recalls are occurring more frequently and often receive media attention. A poorly handled product recall can have a catastrophic impact upon brand reputation, an organisation’s assets and even their ability to continue trading. Whilst a recall extension under a Product Liability policy includes some protection, it does not always reimburse the insured for their own costs incurred to withdraw and replace a product.
XL Catlin is a market leader in this area and takes a flexible approach when understanding clients’ needs. Our award winning claims team provides commercially minded and client focused claims handling and we encourage our policyholders to use our 24 hour crisis response line for help and advice.
Product Recall consists of the following products:
Product Contamination Insurance
Product Contamination cover is suitable for manufacturers, processors, distributors and retailers of topical and ingestible products, such as food, beverage, restaurants, cosmetics, pharmaceutical (OTC) and tobacco.
We offer a limit of up to US$25m for accidental contamination and limits of up to US$50m for malicious product tamper and product extortion.
First Party Recall
First Party Recall insurance is designed specifically to cover manufacturers, distributors and retailers of non-consumable goods, such as toy and child-related products, sports and recreational equipment, household appliances, home electrical equipment, tools and related products, packaging and containers.
We offer a limit of up to US$25m for first party recall.
Cover is on a ‘claims made’ basis and can include:
- recall costs
- pre-recall expenses
- business interruption / loss of gross profits
- rehabilitation costs
- third-party recall costs
- extortion demands
- consultants costs (please Product Recall Consultancy below for services offered).
Who we cover
We look to write clients with good risk management procedures in place, as part of the underwriting process we will commonly require copies of quality assurance manuals, recall plans, and crisis management plans.
Product Recall Consultancy
We have partnered with a number of crisis consultants that are available to assist policyholders. We introduce them shortly after policy inception and during a crisis, they can work on-site with the policyholder to help pinpoint the source of the contamination or outbreak.
In the event of a product recall most companies quickly find themselves immersed in a full scale crisis and our 24 hour crisis response line is available for help and advice
Our consultants include: