NOVI
Our Complimentary Product Recall Cost Estimator Tool
Calculate your risk now
Contaminated Products and Recall Insurance Solutions from AIG
The number and magnitude of product recalls has increased significantly in recent years. In New Zealand, there are an average of two recalls announced every month* – and there are many more that do not become public knowledge. As well as recall costs, product contaminations can cost millions in lost profits, decontamination, manufacturing delays and more, and damage to brand reputation can have a large impact on future earnings.
We have nearly 40 years’ experience helping customers around the world to manage their recall risk. We offer strong, customised covers essential to respond to product contaminations efficiently and effectively, getting your business back to business as quickly as possible.
* New Zealand Ministry of Primary Industries, data from 2011 to 2013.
Product highlights
Comprehensive, flexible cover
The direct costs of recalling a product are often only a fraction of the
true cost to the business. Our protection goes well beyond meeting the
conventional recall charge, and can be tailored to the unique needs of
your business.
Effective support in times of crisis
We partner with food safety and crisis management specialists NSF
International. NSF provide expert advice to mitigate the impact of a
contamination, bringing the situation under control quickly and
effectively, helping to protect company profits and reputation.
Minimise your exposure
Our customers can access pre-loss consulting services with NSF
International to identify and reduce the chance that your products could
be contaminated. They’ll can also review your product recall plans and
simulate a recall, ensuring that you are fully prepared for the worst
case scenario.
A trusted partner
AIG has provided contaminated product insurance to Australasian
businesses since 1986 and to companies around the world for nearly 40
years. Our global experience and expertise, together with strong
relationships with market-leading independent adjusters, forensic
accountants and coverage counsel, ensure innovative solutions and tools
for our customers.
In today’s fast-paced world, products reach customers in less time and in greater volumes than ever before. Mass production, diverse vendors and suppliers, and complex manufacturing processes are commonplace. Product contamination and/or defect can occur anywhere on the supply chain and is a real risk for many organisations.
Unfortunately, business can also be at risk from intentional product contamination from disgruntled employees, political and social activism, sabotage, and terrorism. The financial losses from product tampering and product extortion can be significant, and having a robust plan in place is critical.
AIG offers innovative crisis management solutions enabling our customers to confidently pursue their goals, safe in the knowledge that product recall strategies are in place, plans are tested and potential financial losses are appropriately covered.
- Primary and excess limits of up to $80 million for malicious product tamper and $15m for accidental contamination events.
- Recall costs, replacement costs, extortion costs, rehabilitation expenses, consultant costs and business interruption.
- In-house claims personnel available 24-hours-a-day, 7-days-a-week, dedicated to crisis management claims and quality service.
- Global claims support.
- 24-hour emergency response helpline with access to experts from NSF International.
- Pre-incident training by world-renowned consultants.
- Complimentary customised on-line recall cost estimates via NOVISM
Our CPI cover is designed for manufacturers, producers, suppliers and retailers of foods, pharmaceuticals, cosmetics, or consumer goods.
NOVISM estimates the financial impact of a product recall caused by an accidental product contamination. We help you better understand your risk, so you can make better decisions to protect your customers, your supply chain, and your bottom line.
Your confidential NOVISM Estimate is the largest probable loss you may face in the event of an accidental product contamination that occurs during production at the plant level. In insurance terms, the NOVISM Estimate is also known as a Probable Maximum Recall Loss. It includes the value of contaminated products, recall expenses, destruction costs and lost profit associated with the contaminated products.
Our estimate is based on an extensive analysis of thousands of recall incidents, insight from over 25 years of interaction with food and beverage manufacturers worldwide, and input from leading food safety consulting companies.
Our goal is for NOVISM to provide a confidential, objective and accurate reading of the product recall risk, allowing companies to:
- Better understand potential recall exposure;
- Determine the split between the amount of product recall exposure retained on the balance sheet versus the risk transferred via insurance;
- Better manage third party volumes or contractual indemnity provisions, by measuring the recall risk at the supplier or contract manufacturer level.