An increasing awareness of health and food safety over the years has led to enhanced sensitivity for consumer protection, and as a result there is increased activity by lawmakers who often create more stringent regulations. An example of this is the compulsion in all member states of the European Union to highlight allergenic substances in any food-related text (like labels or product descriptions) since the end of December 2014. Furthermore manufacturing processes are becoming more complex and technological innovations in analysis methods are allowing for increasingly smaller samples to be required to detect substances that are a health hazard. All these developments increase the likelihood of product recalls for food and beverage companies.

HDI provides industry-specific ‘Contaminated Products Insurance’ - prevention, risk insurance and crisis management enable companies to significantly reduce the negative impacts of a product recall, like lost profits and reputation damage.


Scope of services at a glance

Contaminated Products Insurance (CPI)

CPI represents a special solution for food & beverage companies. In an emergency the affected company is provided with the necessary support by an acknowledged crisis management, product recall or PR consultant.

The key feature of this solution is extensive reimbursement of costs:

  • Product recall costs, including the costs of a first-party recall and of a third-party recall by the policyholder’s customers or by a government agency
  • Decontamination costs, re-design and re-development costs or consultants’ fees
  • Reimbursement of manufacturing costs, lost profits and the not realized profits resulting from a decline in sales
  • Costs of advertising activities to counter the threat of a loss of sales.
  • Prevention consultancy provided by an acknowledged crisis management consultant at the beginning of the policy term is an option.
  • Extensions of cover can be provided in special clauses.

Highlights

24/7 access to crisis management consultant

HDI partners with several well-known crisis management consultancies. Policyholders get free access to the crisis management consultant of their choice around the clock by calling a hotline.

Professional, discreet claims handling

Given HDI’s extensive professional know-how and many years of best practice claims settlement experience, companies can rely on professional, discreet processing and settlement in the event of a claim.

Tailor-made risk insurance from a single source

Companies can insure against specific risks by taking out single or additional cover and thus prepare effectively for an emergency.