Estimate the financial impact of a product recall caused by an accidental product contamination.
Although they are more widely reported, a product recall is only one of the potential consequences of a product contamination. Affected companies report the volume of recalled products, but rarely disclose the real cost of contamination incidents. In addition to recall costs, product contaminations can cost food and beverage manufacturers millions in regulatory compliance, lost profit, decontamination, prolonged manufacturing delays and more. Ingredient contamination can be particularly costly, and with today’s global supply chains, can impact even those who do not think they are at risk.
The long-term brand damage to an entire product category, if tarnished, can impact earnings over a longer period of time. Government agencies monitor product contaminations and can force companies to take corrective action ranging from product recall, extended product recall, or suspension of production.
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.
NOVISM estimates the financial impact of a product recall caused by an accidental product contamination. We help you better understand your risk, so you can make better decisions to protect your customers, your supply chain, and your bottom line.
Your confidential NOVISM Estimate is the largest probable loss arising from an accidental product contamination that occurs during production at the plant level, assuming failures of critical control points in the sourcing or manufacturing of the company’s product. In insurance terms, the NOVISM Estimate is also known as a Probable Maximum Recall Loss. It includes the value of contaminated products, recall expenses, destruction costs and lost profit associated with the contaminated products.
AIG’s methodology is based on an extensive analysis of thousands of recall incidents, insight from over 25 years of interaction with food and beverage manufacturers worldwide, and input from leading food safety consulting companies.
AIG's goal is for NOVISM to provide a confidential, objective and accurate reading of the product recall risk, allowing companies to:
The NOVISM Estimate is a data point, based on over 25 years’ experience, to help food and beverage manufacturers distributors, and importers to make more informed decisions about their risk.
Any food and beverage company can access NOVISM. Third party requests on behalf of such companies are not eligible.
Please use the following steps:
Enter the appropriate contact, company and plant location information (for up to three different plant locations). Submit your information for review. For each plant you have the option to select the language in which plant specific information will be collected (see next step – NOVISM Questionnaire).
Within a few days, you will receive a NOVISM Questionnaire via e-mail containing a confidential questionnaire. The questionnaire is distributed as a PDF form and has a unique identifier for your company and plant. If you registered more than one plant, you will receive one e-mail and questionnaire per each plant.
Complete the NOVISM Questionnaire. Please have the following information accessible to help you complete the process:
All fields are required unless marked otherwise. Selecting a blue help icon will reveal further details on how to complete specific fields. The form can be saved by the user until completed.
Upon completion, please forward your responses on the NOVISM Questionnaire by selecting the “submit” button located at the end of the form. In approximately three days, your personalized NOVISM Estimate and a questionnaire summary will be emailed back to you. If you chose the insurance broker distribution option, a copy of this will be sent directly to your broker.
NOVISM Product Recall Cost Estimator LIMITATIONS
The NOVISM estimate does not consider an increase in loss caused by: