Contaminated Product Insurance, also known as Product Recall Insurance, is an increasingly important area as businesses recognise the need for enhanced coverage due to contractual obligations or to protect their brand reputation.
Industries such as food and drink, cosmetics, pharmaceuticals, and distribution are particularly vulnerable to product contamination, whether accidental or intentional through malicious tampering.
The costs associated with recalling, replacing, or destroying contaminated products, along with efforts to restore customer trust, can be significant. Long-term expenses, including loss of profits, brand repair, and the potential loss of key customers, can also severely impact a business’s financial health.
What does this Insurance Cover?
Contaminated Products Insurance offers coverage for recall expenses, loss of gross profits, and rehabilitation costs resulting from both accidental and malicious contamination, whether actual or threatened.
Recent updates to the policy include coverage for adverse publicity and government-mandated recalls. Additionally, crisis management planning and loss prevention services are available and partially funded by the insurance contract. Specialty response consultants will also be provided to offer advice and assist in containing and managing incidents on behalf of the insured.
Cover comprises of four parts:
- Accidental Contamination
Accidental or unintentional contamination, impairment or mislabelling of an insured product or any adverse publicity implying such, which occurs during the production process. - Malicious Product Tampering
Any actual, threatened, alleged, intentional, malicious alteration or contamination of an insured product so as to render it unfit or dangerous for its intended use. - Product Extortion
Threat to commit a Product Tampering for the purpose of demanding ransom monies. - Governmental Recall
Food or products can be recalled when it poses a possible pubic health and safety risk to consumers.
What is Covered?
- Pre-Recall Expenses
- Recall Expenses
- Third Party Recall Expenses
- Insured's Loss of Gross Profits
- Increased Cost of Working
- Rehabilitation Costs
- Product Extortion Demand
- Crisis Response Fees
- Adverse Publicity
Contaminated Product Insurance is suitable for manufacturers, processors, distributers and retailers of topical and ingestible products, such as food, beverage, restaurants, cosmetics, pharmaceutical (OTC) and tobacco.
General Advice Warning
The information provided on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice on this website is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making a decision based on this advice you should consider whether it is appropriate to your particular circumstances.
Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a disclosure document, including the Product Disclosure Statement (PDS) and, where available, Target Market Determination (TMD) relating to the product and consider the content before making any decision about whether to acquire the product.
Authorised by Clearlake Insurance Brokers ABN 16 651 113 861 AFSL 559829
How Clearlake Insurance can help
At Clearlake Insurance, we're focused on providing you with:
- Professional insurance services
- Comprehensive insurance programs tailored to your individual needs
- Responsive and proactive claims service
- A competitive price structure
For more information or to arrange cover, please contact us on 02 9037 8970 or simply fill out the form below and one of our insurance brokers will get in touch shortly.
