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Contaminated Products and Recall Insurance

AIG has decades of expertise in helping retailers and manufacturers minimise losses that arise from contaminated and defective products.

Why Choose AIG for Contaminated Products and Recall Insurance?

Product recalls can be damaging for retailers and manufacturers who face the threats of loss of sales, customer confidence, hard-won retail shelf space and contracts. AIG Contaminated Products and Recall insurance can help minimise this damage while demonstrating reliability and professionalism to wholesale and retail connections.

We can provide cover losses arising from contaminated products for manufacturers, retailers and distributors of topical or ingestible products, including food, drinks, cosmetics, pharmaceuticals and tobacco. Additionally, we can cover defective products for manufacturers of finished goods. Businesses can rely on AIG’s broad expertise as a dedicated market leader ready to effectively address claims. 

The AIG Advantage

Market Leading

AIG was the first insurer to offer coverage for Malicious Product Tampering in the wake of the Tylenol capsule incident. Introduced Accidental Contamination Coverage in 1993 in response to strong customer demand.

Crisis management support

AIG clients can make informed decisions when managing a contamination or defect event, with 24/7 exclusive access to a worldwide network of crisis management consultants – including product safety, security and public relations consultants.

Local Expertise and Global Network

Our underwriters understand the local exposure faced by our clients and have access to a global network of resources allowing for comprehensive worldwide coverage. Moreover, claims can be effectively managed, drawing on local, first-hand knowledge of risks, policy forms and business practices unique to every country.

AIG Contaminated Products and Recall Insurance Solutions

Contaminated Products and Recall insurance is designed to protect companies against the financial loss caused by product contamination or defect leading to a product recall. Whether the result of an accidental or malicious act, product recalls are often costly and complex events that result in significant first party losses.

Insured Events in summary:

Accidental Contamination: accidental contamination, impairment or mislabelling of the insured product which occurs during production, packaging or distribution, where use or consumption has or could result in bodily injury or property damage. 

Malicious Product Tampering: an actual, alleged or threatened malicious and wrongful alteration or contamination of the insured product that renders it unfit or dangerous for use or consumption. 

Product Extortion: illegal threats to commit Malicious Product Tampering by persons who demand cash, monetary instruments, property or services. 

Adverse Publicity: the reporting of actual or alleged Accidental Contamination and/or Malicious Product Tampering where the insured product is specially named.

Intentionally Impaired Ingredients: contamination or impairment of an insured product as a result of an ingredient supplied by a third party that was intentional and wrongful but not malicious and renders the product unsafe. 

Government Recall: an official recall order issued by, or is imminent from, a regulatory authority in order to comply with safety regulations, arising from an accidental contamination, impairment or mislabelling of an insured product during production, packaging or distribution and causes the product to be injurious to health or unsafe. 

Insured Events in summary:

Defect: a defect, deficiency or inadequacy that creates a dangerous condition when used that would result, or has resulted, in property damage or bodily injury. 

Malicious Product Tampering: an actual, alleged or threatened malicious and wrongful alteration or contamination of an insured product that renders it unfit or dangerous for intended use or consumption.

Product Extortion: Malicious Product Tampering involving demand for cash, monetary instruments, property or services communicated to the insured. 

Government Recall: an official order that has been issued by, or is imminent from, a regulatory authority in order to comply with government or regulatory recall criteria arising from a defect in an insured product. 

The financial and management implications of incidents and subsequent litigation means expert preventative and incident management advice is essential. Our consultants can help customers to streamline their crisis management and product recall plans, ensuring effective preparedness and significantly reducing the impact of a crisis.

NSF International (NSF)

Through our crisis management solutions AIG customers can access NSF's network of food safety and crisis management specialists. NSF are crisis management and food safety experts, offering pre-incident and crisis response, product recall, crisis management, food safety services and retrieval services.

Cover is designed for manufacturers, producers, suppliers and retailers of foods, pharmaceuticals, cosmetics, or consumer goods.

For any enquiries about purchasing, renewing or making a claim on an AIG business policy, please contact your insurance broker or find a broker here.

Meet your AIG Team

View contact information for AIG Australia Contaminated Products and Recall leaders.

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