Product Recall

Overview
The intentional malicious alteration of consumer products is a pervasive problem. Contamination - whether it is the result of intentional, criminal acts or simple human error - is a crime that is occurring with alarming frequency. Companies that fall victim to these types of incidents often incur staggering costs in damage control and in the restoration of profits and reputation.

Product extortion coverage goes only part of the distance in addressing the full range of exposures facing policyholders. A product contamination incident may not be accompanied by an extortion demand or it may be the result of an error in processing or manufacturing. Malicious Product Tampering and Accidental Product Contamination insurance fill this gap in coverage.

PIA's Malicious Product Tampering policy is triggered by the actual or threatened intentional, malicious or illegal alteration or contamination of a "named insured's" product so as to render it unfit for the use for which it was intended by the "insured" or create such an impression with the public.

Our Accidental Product Contamination policy is triggered by - among other perils - any accidental or unintentional contamination, impairment or mislabeling of the "named insured's" products, or any fault in design specification or performance of such contaminated products - provided that the use or consumption of such contaminated products has resulted in (or is likely to result in) bodily injury, sickness, disease or death within 120 days of consumption.

The problem is of special concern to those firms in the food or beverage industry - either as manufacturers, distributors, retailers or wholesalers.

Policy Highlights:

• Covers recall expenses, including costs of chemical analysis and transportation, value of recalled or destroyed contaminated products, and recall costs of a policyholder's customer should their contaminated product become a component in a customer's finished product.
• Lost gross profit of the "named insured" as a result of an incident covered by the policy.
• Includes rehabilitation expenses to restore the product and re-establish reputation and market share.
• Crisis Response Services 24/7, provided by Corporate Risk International's trained crisis response team - at no extra charge to policyholders.

Both products can be purchased on a monoline basis. PIA's policy is written by Lloyd's of London, which is rated A- by A. M. Best Company.