If your business is involved in the manufacturing or supply chain for foodstuffs, beverages, pharmaceuticals, medical devices, automotive/marine components and so on, this type of insurance can be vital. As with all insurances, it is not so much an expense as an investment in peace of mind and, because of cover for protection of brand and reputation, could literally be the element that keeps your business afloat.

Products can be recalled for a number of reasons and consumer edibles are vulnerable throughout the manufacturing, packing and distribution processes.

Policies cover as standard:

  • Malicious product tampering, which may be a route to extortion. The mere threat can be sufficient for goods to be recalled.
  • Cyber product safety: changes in design and manufacturing can be affected by changes in software programming and coding.
  • Accidental contamination such as introduction of allergens from other parts of the manufacturing area.
  • Rectification: the costs of cleaning, recalibrating, paying staff, replacing products and re-distributing can be significant.
  • Business interruption: in simple terms, if you can’t sell the product, you lose money. Cover will include loss of future sales until the product can be supplied safely and, importantly, be accepted as being safe. Generally, this covers a period of up to 12 months, although longer terms can be covered where necessary. Your customers will also lose income and may institute legal proceeding so this cost is also covered.
  • Ancillary costs such as storage – especially where specialist storage is required such as refrigeration – disposal, destruction and transport.
  • Brand and reputation protection – it is essential to act quickly after a publicised recall event. Crisis media management is a vital – possibly THE vital – part of the cover provided.
  • Most – not all – policies provide access to experts in avoidance and mitigation of recall events. We would always recommend a policy including this service.
  • Customer refusal – where a customer has reasonable belief that a product may be contaminated, they are entitled to refuse a delivery, even where a formal recall has not been issued.
  • Religious product specification guarantee – many world religions have very strict dietary requirements so it would be very easy for a product to be rejected.

Cover is generally provided for up to £10,000,000 any one event.

Why not talk to one of our consultants (Tel 01442 242400) or visit our website. https://aicinsure.co.uk/insurance-scheme/professional-insurance/product-recall-insurance/

Talk to one of our friendly consultants to assess your needs and find a bespoke insurance solution to suit your business.

01442 24 24 00

7 High St, Hemel Hempstead, Hertfordshire, HP1 3AA