Product Recall Coverage
Product Recall and Accidental Contamination are specialized coverages that are often excluded or very limited in most commercial policies. With the advent of heightened regulation by the US Government food and beverage businesses that manufacture and distribute products should consider upgrading their insurance portfolio for these types of risks.
Product Recall coverage is designed to cover first party expenses associated with recalling a product that is currently on the market. Endorsements exist to broaden the coverage to offset more than just direct expenses.
Accidental contamination, on the other hand, is not limited to product that made it into the marketplace. Contamination policies may include coverage for product recall, product replacement, extra expense and loss of profits.
Yet another exposure is Malicious Tampering with your product by disgruntled employees, consumers or other groups. Policies can be tailored to handle these exposures as well.
In both Product Recall and Accidental Contamination coverages there needs to be the belief that the product could cause bodily injury. Policies differ as there is no standard contract language so it is helpful to have someone familiar with the coverage and the insurance carriers placing the coverage to aide in your decision.
More than just First Party benefits should be considered. Consider the risk associated to Third Parties that may ensue due to a recall or contamination. If you are a contract firm there also may be contractual obligations that are expected of you by your clients for the exposure.
If you are interested in finding out more just fill out the Specialty Food and Beverage insurance coverage information form and we will help you make an informed decision about protecting your business.