Accidental Contamination -- Most often thought of as unintentional contamination by an external source or substance. Accidental Contamination also can include “mislabeling.” Mislabeling continues to be the leading cause of product recalls accounting for the majority of all food related recalls. Although the product itself may not be contaminated, the fact that the product’s mislabeling could lead to bodily injury through allergic reaction will precipitate a recall.
Malicious Product Tampering -- A less common, but potentially less controllable and more destructive type of recall may be as a result of an intentional contamination. The motives for product tampering vary widely which makes controlling or managing the exposure very difficult. Although product extortion incidents in the U.S. are uncommon, certain countries including Germany, Canada, the United Kingdom and Australia have a long history of these types of events.
Target Risks
- Food & Beverage Manufacturers
- Food & Beverage Co-Packers
- Ingredient Manufacturers & Suppliers
- Food & Beverage Importers
- Food & Beverage Retailers & Distributors
Markets
- Domestic and international non-admitted carriers
Available Limits
- US $ 500,000 – US$ 100,000,000+ any one Covered Incident and in the Aggregate
Deductibles
- Minimum Deductible = US$ 15,000
- The Minimum Deductible for the risk will increase based on estimated revenues.
Minimum Premium
- Minimum Premiums start at = US$ 5,000
- Worldwide Territory
Covered Incidents
- Accidental Product Contamination
- Malicious Product Tampering
- Product Extortion
Covered Losses
- Recall Expenses – First and Third Party
- Loss of Profits – First and Third Party
- Rehabilitation – First and Third Party
- Extortion Payments
- Crisis Management Fees and Expenses