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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.