Coverholder at LLOYD`S

Product Recall Insurance

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Product recall incidents relating to product contamination and food safety continue to have a high profile in the media and the public eye.

Dėl atsitiktinio ar tyčinio produkto atšaukimo gali atsirasti didelių finansinių nuostolių tiek gamintojams, tiek ir jų partneriams. Dėl vieno incidento kilę nuostoliai gali sustabdyti ar visiškai nuotraukti įmonės veiklą bei nepataisomai sunaikinti reputaciją. Šias problemas gali išspręsti produkto atšaukimo iš rinkos draudimas.

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Description

Insurance coverage

 

  • Free 24/7 crisis helpline for Policyholders provided by ‚Lloyd‘s‘ professionals.
  • Product manufacturer and partner recall expenses (product return, transportation, replacing, administrating, liquidating costs).
  • Insured‘s loss of gross profit
  • Third Party loss of profit
  • Brand rehabilitation costs
  • Retailer‘s expenses

 

Claim examples

 

  • Traces of salmonella have been found in snack manufacturer‘s products.
  • Product investigation/tests, transportation, liquidating, administrating costs and lost profit made EUR 1,000,000.
  • Due to the event third party loss made EUR 700,500. Manufacturer‘s loss made EUR 1,700,500.
  • Product investigation, transportation, liquidating and administrating costs and lost profit made EUR 900,000.
  • Third Party had a loss of EUR 300,000.
  • Total amount of loss – EUR 1,200,000
  • Canned food product manufacturer experienced a product recall due to improper packaging of the product.
  • Investigation, product liquidation, packaging replacing, return to the store, administrating costs and lost profit made EUR 1,800,000.
  • Third Party loss – EUR 760,000. Total amount of loss – EUR 2,560,000.