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The benefits of Contaminated Products & Defective Products insurance from AIG

Contaminated Products insurance

Is for manufacturers, retailers & distributors of topical or ingestible products: food, drinks, cosmetics, pharmaceuticals & tobacco.

Wide protection

Our cover meets recall & rehabilitation costs, as well as lost gross profits. We also cover malicious tampering; whether it’s real or simply threatened.

Pre-incident planning

Events move quickly in a crisis, so our clients enjoy the benefits of professional pre-incident planning when it’s most valuable - before a recall threatens.

Defective Products insurance

Is for manufacturers, retailers and distributors of finished consumer products.

Brand protection

In a recall situation media and public attention can often focus on unsubstantiated stories and speculation. Professional public relations and communications input will assist in managing this & protect the brand, reinforcing reliability and trustworthiness.

Help with recovery

We provide the financial compensation & support for getting your business back on track, like extra staff, impact of lower sales and increased marketing costs.

NOVI Product Recall Cost Estimator

At AIG, we believe the more you understand about your potential risk exposure, the more informed decision you can make about how to protect your customers, your supply chain, and your bottom line.

Knowing your risk starts with knowing your exposure. AIG’s free and confidential service, the NOVISM Product Recall Cost Estimator, boils it down to one number.

As the inventors of Contaminated Product Insurance with over 25 years’ experience, AIG has the expertise to help you better understand your risk, manage exposures, and make decisions to prevent future contaminations and recalls from occurring. 


Product Highlights

Contaminated Products


Covers losses arising from:

  • Accidental or unintentional contamination, impairment or mislabelling resulting from any stage from production to sale that could result in harm to users within 120 days of contact
  • Actual, alleged or threatened, intentional tampering with the product to make it harmful
  • Threats to tamper with a product in order to extort money

The policy covers

  • Recall costs
  • Business interruption (lost gross profit)
  • Rehabilitation costs
  • Consultancy costs
  • Adverse publicity (optional)

Client profile

Suitable for food, drink, tobacco, cosmetics and pharmaceuticals for example.

Scope and terms are subject to the terms and conditions of the policies. A specimen policy is available on request.

Defective Products Insurance


Covers recall losses arising from

  • Accidental omission, introduction or substitution of components or substances
  • Errors occurring in any stage from design, through to labelling and storage
  • Intentional damage that could cause the product the product to be harmful

The policy covers costs to inspect, withdraw, or destroy the product incurred within 12 months after the recall, including:

  • Communication (radio, TV, Internet, ads…)
  • Shipping from purchaser, distributor or user
  • Overtime and additional personnel costs
  • Storage costs and cost of disposal
  • Redistribution
  • Independent Security, PR or Recall Consultants

Client Profile

Suitable for manufacturers of a wide range of finished goods.

Scope and terms are subject to the terms and conditions of the policies. A specimen policy is available on request.

Anatomy of a recall

We help explain what stages your business could expect to go through if your products are subject to recall actions. 

Expert analysis, testing or inspection of the faulty product and the manufacturing facility usually precedes any decision to instigate a recall.

Placing national, local and trade safety notices as part of a recall.

Conducting an efficient recall is essential but the problems do not stop there. If faulty products reach the market place it can also damage your reputation, loyalty of your customers & the confidence of your investors.

Who pays for the extra staff and overtime required to provide customer helplines or receive and account for returned consignments of damaged product? And, who's running the business while everybody is busy with crisis management?

The speed at which affected goods can be traced, identified and recovered is critical to the overall success and damage limitation of a recall operation.

Safely disposing of the damaged or contaminated goods. Certification of disposal may also be required, to prevent dangerous items resurfacing in the secondary market.

Cancellation fees for advertising, media or promotional schedules.

Finding out what caused the product fault (such as contaminated environment or the design specifications) then replacing, restoring or fixing the product.