Product Recall
Manage your product risks with Product Recall Insurance - strategic protection for recall expenses and reputational harm.
In today's competitive marketplace, product safety and quality are paramount. However, despite rigorous quality control measures, unforeseen events can lead to product recalls and contamination issues that can be detrimental to your business. Product Recall & Contaminated Products Insurance is your safety net, providing coverage for the financial and reputational costs associated with these incidents.
Key Coverage Areas:
Physical Costs: When a recall event occurs, there are substantial physical costs involved. This insurance covers expenses related to the collection, transportation, and disposal of affected products. Whether it's retrieving products from store shelves or disposing of contaminated batches, these costs can add up quickly.
Consequential Losses: A product recall or contamination incident can lead to significant financial losses beyond the direct expenses. This insurance helps mitigate the impact of lost sales, reduced market share, and the potential for long-term revenue decline.
Crisis Management Services: Managing a recall event or product contamination crisis requires expert handling. This insurance often includes crisis management services to protect your brand, corporate reputation, and customer confidence. These services can include public relations, communication strategies, and legal support.
Covered Scenarios:
Losses covered by Product Recall & Contaminated Products Insurance can result from various scenarios, including:
Product Fault: If a potential fault in a product or its labelling is identified, necessitating a recall.
Accidental Contamination: Coverage extends to situations where contamination occurs unintentionally during production or handling.
Malicious Tampering: Acts of intentional product tampering by malicious actors are covered.
Threats: When there is a credible threat to interfere with a product's integrity, this insurance provides protection.
By investing in Product Recall & Contaminated Products Insurance, your business gains a crucial layer of protection against unforeseen events that could jeopardise your brand's reputation and financial stability. This insurance provides the resources needed to respond swiftly and effectively, minimising the impact of product recalls and contamination incidents.
To explore how Product Recall & Contaminated Products Insurance can be tailored to your business's unique needs and risks, contact Intuitive. Our experienced professionals are here to help you safeguard your brand and bottom line against the unexpected.
Why trust Intuitive Insurance Solutions to deliver the best outcome for your Product Recall Insurance?
Expert Advice
We work for you, not the insurer. Our expert team are dedicated to tailoring insurance programs to your unique needs and negotiating the best possible outcomes on your behalf.
Transparency
We firmly believe in full transparency when it comes to remuneration. We understand that trust is built on open and honest communication. That's why we are committed to providing visibility in all aspects of compensation. With us, you'll always know where you stand, ensuring a relationship founded on trust and fairness.
Market Access
With access to policies from more than 150 national and international insurers, you can feel confident we can deliver the cover you need.
Claims Advocacy
We take care of the process, helping you achieve the best possible outcome by working closely with you and the insurance company throughout. We keep you informed every step of the way.
Insurance is what we do, but what do we do for you?
Understanding our clients and their needs is critical to our success. By taking the time to understand your business and objectives we can save you time, money and provide greater certainty on what your insurance program covers. We aim to make your life easier by delivering truly intuitive insurance solutions.
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What is a claims-made policy and how does it differ from an occurrence-based policy?A claims-made policy covers claims that are made (or reported) to the insurer during the policy period or an extended reporting period. The key factor is when the claim is reported, not when the incident occurred. On the other hand, an occurrence-based policy covers claims that arise from incidents or events that occur during the policy period, regardless of when the claim is reported. The key factor in this case is when the incident took place and not when it is reported.
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What is a retroactive date?A retroactive date is applied to claims-made policies and defines how far back in time a breach of professional duty can occur for your policy to respond. As an example, consider that a professional purchases a PI policy on January 1, 2023, and a retroactive date of Inception is applied (i.e., January 1, 2023). This means that the insurance policy will cover claims or legal actions arising out of professional services provided on or after January 1, 2023.
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What is meant by costs inclusive versus costs exclusive (limit/excess)Where a limit of liability is described as costs inclusive, this means the limit afforded includes both the indemnity (the compensation amount paid to a claimant) as well as the costs and expenses incurred in defending the claim. Conversely, a costs exclusive limit of liability applies to the amount paid to the injured party only (indemnification), and costs and expenses are paid in addition by the insurance company (often capped). A “costs inclusive excess” (or deductible) means that the excess amount applies to the total costs associated with a claim, including legal expenses, damages, and other related costs. In this case, the policyholder is responsible for covering these costs up to the excess amount, and the insurance company will start paying once the costs exceed the excess. Under a “costs exclusive excess”, the deductible or excess amount only applies to the indemnity portion of a claim. Legal defence costs are typically covered separately, and the policyholder doesn't need to pay the excess for these costs. Instead, they are covered by the insurance company from the outset.
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What is contractual liability and why is it important?Contractual liability in professional indemnity insurance refers to the responsibility that professionals might take on through contracts with their clients. This includes how this liability is covered in a professional indemnity insurance policy. Professionals often sign contracts with their clients when they provide services. These contracts spell out the professional's duties, the work's scope, deadlines, and even clauses about protection. When professionals buy professional indemnity insurance, it can cover them for contractual liabilities, as long as these liabilities come from events listed in the insurance policy. This coverage can be broad or limited to professional mistakes or negligence. It's crucial to understand the terms and conditions of your insurance policy. Some policies might not cover certain types of contract-related liabilities. If a client or someone else sues the professional, claiming a contract breach or professional error, the professional indemnity insurance policy comes into play. The insurance company will typically investigate the claim and, if it's valid, provide coverage for legal expenses. If necessary, it can also cover any settlements or damages awarded.
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What are territorial and jurisdictional limits and how are they different?Territorial limits define the geographical area or region where the insurance policy provides coverage for work performed. This means the insurance policy specifies the locations or countries within or from which services can be supplied. Jurisdictional limits relate to geographical area or regions the policy will respond to claims brought within the court system. This means the insurance policy specifies the locations or countries within which legal action can be heard. In summary, territorial and jurisdictional limits relate to the physical locations or regions where the insurance coverage is valid, and you should ensure these extend to all locations where you carry out work or clients are based.
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What is the difference between a limit reinstatement and aggregate limit:On face value, a limit of indemnity with 1 reinstatement and a limit of indemnity with an aggregate of double the limit may seem the same, but they work differently. Reinstatement: If you have a policy with a reinstatement, the insurer restores the full limit of indemnity after a claim, even if it's partially used. The limit will only be reinstated the number of times specified on the policy. Aggregate Limit: With an aggregate limit, your coverage is reduced by the actual claims made. It provides unlimited reinstatements it is fully exhausted, providing more certainty of the level of coverage afforded.
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Can an additional insured be added to the policy?In many cases, it is necessary to include an additional insured on your insurance policy, thereby extending liability coverage to this party. Such requests frequently originate from parties with a vested interest in your operations, including contract manufacturers, subcontractors, vendors, and other partners within your supply chain. This practice is common in business relationships where one party seeks protection from the potential liabilities of the other party.
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What are the implications for adding an additional insured party?Adding an additional insured party to an insurance policy carries certain implications that are important to understand. An additional insured typically enjoys similar rights and responsibilities as the primary policyholder. This means that they can often file a claim directly against the policy and have access to the policy's coverage limit. However, it's crucial to note that if a claim is made against both the primary insured and an additional insured, it can deplete the liability limit more rapidly, potentially leaving the primary policyholder with insufficient protection.
