Imagine that your business supplies beef mince to a meat processing company. The mince is used for a Bolognese sauce that ends up on pizzas made by another business. The pizzas are distributed and are on the supermarket shelves when the contamination is confirmed. What now?
Your business will be made liable for all catastrophic consequences that arise: your sales figures fall, your reputation is smeared in the press and you lose important contracts. Your classic company liability insurance does not cover any loss of profits in this regard.
You can avoid a nightmare of this sort by taking out contamination insurance.
Contamination insurance is primarily of interest for businesses in the following sectors: drink and food, retail, production/packaging, distribution, cosmetics and pharmaceuticals.
Many insurers have developed their own insurance products with specific warranties and cover for product contamination or recall. Vanbreda Risk & Benefits conducts an analysis of the various insurance packages and selects the optimal solution for you.
Under the term contamination we include a defective product that is harmful to the health or unsuitable for human consumption, regardless of how it is supplied. As soon as a potential risk threatens public health, the contamination insurance provides help.
The majority of contaminations are accidental and are caused by external materials (metal, glass), chemicals (residues from cleaning products, oil), pathogens (salmonella, listeria) or incorrect labelling (important for allergies).
Alongside unforeseen contaminations, malicious/intentional contaminations (e.g. by a dissatisfied employee) and/or product extortion are also covered.
A transparent contamination insurance policy repays the costs listed below, among others:
- Recall costs (both first party and third party). A special feature is that this cover applies worldwide and can also be extended to production entities abroad.
- Destruction costs
- Replacement costs (the costs of replacing recalled products with products of equal value)
- Redistribution costs
- Loss of profits (loss of gross profit)
- Rehabilitation costs (costs incurred when rebuilding the corporate image, e.g. marketing campaigns)
- Extortion costs (ransom)
- Fees for consultants and experts
- Analysis costs
Vanbreda Risk & Benefits has conducted an analysis of the various insurance packages on the market and always selects a solution to suit your business. There are particular advantages associated with a separate recall insurance policy: the civil liability rule (fault, damage and causal link) is, for example, no longer relevant when obtaining cover. And violating a public-health standard is sufficient to be able to recall a product, regardless of with whom or where the cause of the damage lies. Our contamination policy goes further than what is usually on offer on the insurance market and offers you the most expanded conditions. Classic civil liability insurance policies exclude certain specific diseases (listeria, salmonella etc.). In our contamination insurance these diseases are properly covered. Furthermore, the premium and the relevant premium rate are especially competitive.
Do you want to know more about contamination insurance? Contact us.