Posted in News on 15 Apr 2019

It’s essential for companies to address product recall and contamination exposures. The decision to purchase an insurance policy, and Crisis Consulting services, is usually the result of today’s regulatory environment and customer demand.

Therefore, access to expertise or the need to fill the coverage void from traditional property and liability insurance policies is a crucial requirement for companies seeking to protect their future profitability.

Whatever the reason, our team of product recall specialists are available to assist with arranging cover. We work with some of the leading London insurers assisting customers from around the world with primary and excess product recall, contamination and product guarantee solutions.

Customising coverage

Whether it is contractual exposure to key customers, government recall or brand and reputational concerns, we have the capability to tailor coverage to ensure that each insured get the coverage that can fit their individual needs.

On the more complex or larger accounts we would seek to engage with you and increase our understanding of the prospective insured so we can achieve a bespoke product for each customer. We also offer seamless communication between our placing and claims teams to produce a suitable outcome for each insured.

Our London based wholesale team offers access to primary capacity through a panel of London market insurers, European insurers and Bermuda markets.

In addition, for clients already purchasing the maximum limit available through their primary insurers, we have the ability to build higher limit programs, beyond what is available through the primary insurers.

Crisis consultancy

Every policy we place includes access to pre and post loss consultancy which helps clients to evaluate their insurance and risk management needs as they relate to product recall. Each insurer we utilise partners with the top crisis consultants in the industry. Services available include:

  • Desk top review of recall, HACCP and crisis management plans
  • Recall Planning
  • Crisis recall simulation
  • HACCP plan development
  • Quality Assurance Audit & Training
  • Food Safety Audit and Risk Assessment.

General highlights

Primary Limits are available from USD1m and upwards. For any business requiring more than USD10m of limit, excess limit policies are available and the London market has capacity available in excess of USD100m. Minimum premiums generally range from USD15,000 to USD25,000.

Standard coverage for food, beverage and pharmaceutical products includes:

  • Accidental contamination (including mislabelling)
  • Malicious product tampering
  • Product extortion.

Standard optional endorsements include:

  • Government Recal
  • Third Party Recall
  • Intentionally Impaired Ingredients
  • Third Party Loss of Profits
  • Adverse Publicity.

The policy for consumer durable products and auto components offers balance sheet protection against product safety issues. It covers finished products and component parts, including product guarantee, and will pay for recall and associated expenses, such as:

  • First Party costs of reworking and/or replacing products that have failed to perform their intended function
  • First and Third Party costs of recalling and replacing products that have caused or could cause bodily injury and/or property damage or that could fail to perform in the future
  • Financial losses suffered by Third Parties as a result of a product supplied failing to perform its intended function and for which the Insured is liable
  • Legal costs, fees and expenses incurred in the investigation, defence or settlement of any valid claim
  • Advertising & communication costs
  • Transportation costs
  • Disposal costs
  • Extra expense and additional staff costs.

Target industries

  • All class of food & beverage enterprises
  • Life Science, health & nutrition & Pharmaceutical
  • Consumer Durables
  • Auto Components.

Submission requirements

Indications are available by providing a few essential items. Company name, business description, past and projected annual revenues, distribution of sales and confirmation of claims experience if any.

Bindable quotes will require completed applications and copies of crisis management and recall procedures and other supporting  documentation. Please contact one of our specialists for complete requirements.

About Alesco
Alesco is a specialist insurance and risk management business located in the heart of the City of London. Founded in 2008 by a team of experienced professionals, we provide a wide range of risk-management services and insurance solutions which are fundamental for protecting organisations. We work closely with underwriters in the London markets, in key global insurance centres, and with local broking partners in 150 countries.



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