There are many scenarios that may lead to product recalls. This is the case, for example, when a food manufacturer is blackmailed because his goods have been contaminated with a toxic substance. Or if, when bottles are being filled, a break on the screw top on one bottle leads to a health risk for consumers. It may also happen that elevated levels of pesticides are found in an organic food product. It is important in cases like these that when there is a public recall the company acts quickly and correctly so that it can survive the recall unscathed. Comprehensive cover for all such industry-related risks is guaranteed with our Exclusive Product Cover (PES). Food and beverage manufacturers and dealers - also from the organic sector - can rely on a combination of prevention, risk protection and crisis management.

Services at a glance - Exclusive Product Cover (PES)

PES provides insurance cover in a variety of risk situations, such as if a product defect is discovered that poses a health risk, if a product is manipulated by third parties or if a product recall is ordered by the responsible authorities. In such crisis situations, the company can rely on the support of a declared crisis, recall or PR adviser and comprehensive compensation for

  • Recall costs, which are the costs of a recall made both by the company and an external body, the latter being triggered by the policyholder's customers or a state authority
  • Decontamination costs, costs for redesign and redevelopment and adviser fees
  • Manufacturing costs, lost profits and profits that are no longer achievable in the future because of declines in sales and fixed costs
  • Costs for advertising measures to overcome imminent sales losses

There is the opportunity to have a consultation about prevention with the declared crisis adviser at the beginning of the policy.

Brand protection for organic foods and beverages (BIO)

In addition to PES cover, BIO brand protection offers manufacturers and dealers of organic foods and beverages extended cover options by access to five special clauses (SK):

Contaminations of at least 0.1 per cent, recall costs and balance sheet protection positions - regardless of whether a health risk or unsuitability has been identified

Contaminations that exceed the maximum permitted content of pesticide residues in accordance with EU Regulation 396/2005, recall costs and balance sheet protection positions - regardless of whether a health risk or unsuitability has been identified

Recall costs if GMO or pesticide contamination is claimed in publications as the overall result of defective test reports from Stiftung Warentest but this is not actually given.

Extension of BIO-SK GMO and pesticides to products in the manufacturing process

Extension of BIO-SK GMO and pesticides to costs arising from a contractual milk obligation


Viable safety net for product recalls

Far-reaching cover and balance sheet protection

The right security - also for organic areas

Customised design with selectable modules

Support from crisis advisers when things become serious

Access to crisis management and prevention consultation

Competent and discreet claims processing

Professional claims management with many years of settlement experience

Expert´s Tip:

Industry solution for medium-sized companies

Small- and medium-sized organic food and beverage manufacturers and dealers will receive insurance cover that is lean but tailored to their requirements with HDI Product Compact Cover Insurance (Produkt-Kompakt-Schutz-Versicherung, PKS). Accidental product defects and deliberate product manipulations can be insured individually with manageable excesses. The scope of service is more broadly structured than a traditional recall policy. As part of the BIO brand protection there is, analogous to the PES coverage, access to the special BIO clauses.

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