Placing Product Recall and Contamination Insurance can be tricky. New entrants to the market bring new opportunities but also new challenges, as new coverage forms become available and insurers are becoming more familiar with the claims environment.

Insureds are coming to understand that this coverage is “must have” rather than a “nice to have” insurance. The coverage available in the marketplace can vary widely and the process in the event of a claim can be burdensome. CRC, CRC Swett, & SCU have experts to assist in securing the right coverage, and guiding the insureds through the claims reimbursement process with the right resources to ensure that clients are getting what they expect from the insurance.

We have featured a number of instances where CRC, CRC Swett, and SCU have made the difference and secured a winning result for an insured. While all clients and claim situations are different, using the CRC, CRC Swett, and SCU experts is critical in securing the best results for your client.

Product Recall and Contamination Expertise

While working with a large produce processing company, CRC experts manuscripted policy language to provide coverage for member growers. In addition, we collaborated with the insured and crisis consultants to create a new quality control system for qualifying potential member growers.

A catering company was struggling to secure payment from an insurer relating to a difficult claim. While the client had followed the claims reimbursement process requirements, the insurer was unwilling to pay without the government agency incident report relating to the outbreak. Using our strong market relationships, we were able to negotiate payment by the Insurer.

A construction equipment component part manufacturer reached out to us to improve their product recall coverage placed elsewhere. While broadening their third party coverage and eliminating the retroactive date, we were also able to reduce the annual premium.

An insured received a blanket carrier declination on a product recall claim. CRC Coverage Counsel identified the court decision that formed the backbone of the declination and located a differing opinion in a more prestigious venue. CRC recall brokers were then able to convince the carrier to reverse their declination, cover the claim, and, in due course, pay full policy limits.

After months of futile work with high profile accountants to develop claims handling strategy, a large food manufacturer turned to us for product recall expertise. We brought forward specialized forensic accountants who were able to draft the necessary policy language and strategy.

A retailer provided CRC with a primary $5 Million Contaminated Products quote seeking $45 Million in excess capacity for a large food additive processor. While the terms were appropriate, the premium appeared high. We presented two alternative primary quotes that were 60% lower in premium while providing the same coverage terms. We were also successful in placing the additional $45 Million, building on the significant premium reduction throughout the tower.

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For more information, contact your CRC, CRC Swett, or SCU broker. To find a conveniently located CRC, CRC Swett, or SCU broker go to crcins.com or crcswett.com.