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Product Contamination

Protect Your Client's Brand Reputation

IIABCal members have access to two exclusive product contamination programs:

Product Contamination Insurance for companies of all sizes, product contamination is a loss exposure that cannot be ignored. Contamination, whether the result of criminal acts or simple human error, is occurring with alarming frequency in the U.S. and around the world. Companies that fall victim to these types of incidents often incur staggering costs in damage control and in the restoration of profits and brand reputation.

Product Contamination Insurance for the Dietary and Nutritional Supplement Industry to protect against malicious Product Tampering, Accidental Product Contamination, Adverse Publicity, Government Recall.  This program is for companies of all sizes, product contamination is a loss exposure that cannot be ignored. Companies involved in virtually any segment of the dietary and nutritional supplement industry face potentially devastating losses in connection with these contaminations — in the form of recall expenses, damage control costs or lost profits, to name a few. For many commercial enterprises, issues with co-packers and the global sourcing of finished products or ingredients add a new dimension to the exposures facing those in the dietary and nutritional supplement manufacturing or distribution chain.


 

Program Highlights:

  • Available coverage limits of $250,000, $500,000, $750,000 & $1 million
  • Excess limits available in conjunction with the IIABCal Program
  • Broad coverage offering including coverage enhancements not always available with other carriers and bundled in with the Independent Insurance Agents and Brokers of California Program. Coverages include: Recall Expenses (First & Third Party, Rehabilitation Expenses). Publicity Coverage (in both Malicious Product Tampering and Accidental Product Contamination sections).  Government Recall (broadening the Accidental Product Contamination trigger).
  • Crisis Management Services provided by ExpertRECALL, included with the policy.  Services include pre-crisis planning and a Model Plan designed to assist the insured in the planning and implementation of strategies for dealing with product contaminations.
  • Quick underwriting turnaround. Swett & Crawford will review all submissions before underwriting by Tokio Marine HCC to ensure accuracy and speed.

Policy Highlights:

  • Product Extortion Coverage available.
  • Includes the “Publicity” trigger in the Accidental Contamination portion of the policy. Many carriers will not cover this… or may try to sublimit it.
  • No exclusions for: genetically modified organisms (GMO), irradiation, hormone treatment, Avian Flu and Dioxins.
  • Broad definition of Accidental Contamination. Many carriers limit their definitions to “has caused or would cause”), a higher threshold for coverage to be available.  Tokio Marine HCC uses the terms “…has either resulted, or may likely result, in…”.
  • Coverage for “fault in design”. Many carriers do not include this language in the policy form.
  • Tokio Marine HCC covers all “reasonable expenses” incurred by a recall event; other carriers will only cover expenses that are specifically enumerated.
  • No restrictive sublimit for Raw and Unfinished Stock. Many other carriers will sublimit this exposure.
  • Third Party Recall included. Some carriers will not cover Third Party Recall.

Product Underwriter:


Tokio Marine HCC’s policy provides coverage to help companies deal with the financial consequences of a product contamination crisis, including reimbursement for recall expenses, value of contaminated products, third party recall expenses, increased cost of working, extortion costs, loss of gross profits, rehabilitation expenses and crisis consultant expenses from a retained recall specialist, Stericycle® ExpertSOLUTIONS.™

Contact Information:


Program Administrator

Eric Bell, AFIS, CRIS
Vice President
CRC Swett
559-994-6100 - cell
559- 261-3362 - office
eric_bell@swett.com