Comprehensive coverage is provided for a product recall that results in, or creates a threat of bodily injury or property damage.
- First-party covered recall expenses include:
- Cost of notifying customers of a recall
- Cost of shipping and disposing of the recalled product
- Extra warehouse expenses
- Costs associated with refunding, repair or replacement and shipment of a new product back to the customer
- Third-party compensatory damages contractually required to pay a distributor or purchaser of a recalled product are also covered
- Third-party covered compensatory damages include:
- Cost of repair of the third-party’s product
- Business interruption caused by the recall
- Damage to the brand reputation of the third-party
- Defence costs incurred as the result of any claims made from the product recall
Additional coverage options available:
- Costs to refund, repair or replace a product
- Impaired property
- Government recall
Target classes of business:
- Ingredient manufacturers and suppliers
- Flavours and fragrance
- Food and beverage manufacturers or distributors
- Meat or seafood processors
- Chemicals (food and cosmetic grade)
- Packaging product manufacturers
- Educational toys
- Consumer product manufacturers
- Children’s product manufacturers
AIG Capacity and Limits:
- Capacity up to $10M for first party recall and third-party recall liability
- Minimum self-insured retention (SIR) of $25K
- Minimum premium of $15K
