Product Recall: Industry Information
The coverage has been around since the 1980s. The first type of product recall insurance was called malicious product tampering, which only responded to malicious incidents. The limits were $3 million, with six-figure premiums. That's the way it was for a couple of years.
Because it's catastrophic insurance in nature, when losses occurred, they are generally major. Clients are not concerned with the smaller losses they can handle financially in-house. What they are looking for is protection from large losses.
When coverage first came out, because of the price tags and the minimum deductibles required, it was accessible only to large, multinational food companies. But now almost every insurer has a strategy to go after smaller businesses. Products Recall is designed to help the insurance manage the crisis of such an occurrence and help protect against product degradation and third-party lawsuits.
In addition to Products Recall, we can provide a wide range of other crisis management programs including:
Contaminated Products Insurance
Designed for food and beverage companies, Contaminated Products Insurance covers losses associated with malicious product tampering and accidental product contamination. Coverage encompasses the far-ranging costs associated with these incidents, including the costs of the recall itself and related business interruption, business rehabilitation, and consultant expenses.
Products Recall offers insurance protection in the event of a recall of an insured's product. This protection includes coverage for the insured's product recall expenses and liability to third parties bodily injury extortion; property extortion; product contamination extortion; trade secret/computer virus extortion; wrongful detention and hijacking.
Endorsements available to extend coverage include:
- Cost to Refund, Repair or Replace Insured's Product
- Worldwide Coverage
- Impaired Property Recall Response is available
Customer Profile: Recall Response is designed for the following types of operations:
- Machining, stamping, assembly, and heat treating operations
- Metal and plastic component manufacturing
- Food and beverage
- Consumer product manufacturing
- Electronic component manufacturing and equipment
- Packaging and bottling operations
- Medical products
- Children's products
- Distributors of foreign goods in the United States
Targeted Classes: Classes of business include food & beverage, medical, pharmaceutical, consumer, and industrial products.
Target classes include: In addition to Automobile Component Parts and Tobacco products the following target:
Product Recall Expenses up to $10 million
Product Recall Liability up to $10 million
Minimum Premium $7,500
Our carriers can provide expert knowledge of various recall coverage's available and tailor our program to fit the requirements of an insured. In the event of a recall, claim expertise and a legal panel are available to guide an insured through government regulations and requirements.
Coverage A pays the first party expenses associated with the recall, such as notification, shipping, warehousing, and additional personnel. Through the attachment of an endorsement, Coverage A can be extended to include the cost of repair, replacement, or refund of the product.
Coverage B provides coverage for the claims by third parties seeking damages due to a product recall. Coverage B may be extended by endorsement to cover liability for the impaired property. The optional impaired property endorsement provides coverage for the insured's products being incorporated into another company's product and causing it to not function properly.
In addition to Products Recall, we can provide a wide range of other risks management programs including:
Contaminated Products Insurance: Designed for food and beverage companies, Contaminated Products Insurance covers losses associated with malicious product tampering and accidental product contamination. Coverage encompasses the far-ranging costs associated with these incidents, including the costs of the recall itself and related business interruption, business rehabilitation, and consultant expenses.
Classes of Business - CPI
Classes of risks include a wide variety of manufacturers, processors, and retailers in the stream of commerce of the food supply chain as well as pharmaceutical and cosmetics. The major eligibility factor is that the product must be ingestible or topical. Typical food risks include canneries of fruits and vegetables; manufacturers of grocery products such as breakfast cereals and boxed flour or grain products; condiments; baked goods and snack food; and supermarket chains.
Target classes of business include:
Our company has various A-Rated or better carriers that can provide International Coverage.
7.5-10%, depending on the line of coverage and size of the account.
Product Recall Application
5 years of loss history
Detailed Information on quality control
|MKTSC Recall Response Application||MKTSC Recall Response Application|