1. Placing Product Recall and Contamination Insurance can be tricky. New entrants to the market bring new opportunities
but also new challenges, as new coverage forms become available and insurers are becoming more familiar with the
claims environment.
Insureds are coming to understand that this coverage is “must have” rather than a “nice to have” insurance. The
coverage available in the marketplace can vary widely and the process in the event of a claim can be burdensome. CRC,
CRC Swett, & SCU have experts to assist in securing the right coverage, and guiding the insureds through the claims
reimbursement process with the right resources to ensure that clients are getting what they expect from the insurance.
We have featured a number of instances where CRC, CRC Swett, and SCU have made the difference and secured a
winning result for an insured. While all clients and claim situations are different, using the CRC, CRC Swett, and SCU
experts is critical in securing the best results for your client.
Product Recall and Contamination Expertise
While working with a large produce processing
company, CRC experts manuscripted policy language
to provide coverage for member growers. In addition,
we collaborated with the insured and crisis consultants
to create a new quality control system for qualifying
potential member growers.
A catering company was struggling to secure payment
from an insurer relating to a difficult claim. While the
client had followed the claims reimbursement process
requirements, the insurer was unwilling to pay without
the government agency incident report relating to the
outbreak. Using our strong market relationships, we
were able to negotiate payment by the Insurer.
A construction equipment component part
manufacturer reached out to us to improve their
product recall coverage placed elsewhere. While
broadening their third party coverage and eliminating
the retroactive date, we were also able to reduce the
annual premium.
An insured received a blanket carrier declination on a
product recall claim. CRC Coverage Counsel identified
the court decision that formed the backbone of the
declination and located a differing opinion in a more
prestigious venue. CRC recall brokers were then able
to convince the carrier to reverse their declination,
cover the claim, and, in due course, pay full policy
limits.
After months of futile work with high profile
accountants to develop claims handling strategy, a
large food manufacturer turned to us for product
recall expertise. We brought forward specialized
forensic accountants who were able to draft the
necessary policy language and strategy.
A retailer provided CRC with a primary $5 Million
Contaminated Products quote seeking $45 Million in
excess capacity for a large food additive processor.
While the terms were appropriate, the premium
appeared high. We presented two alternative
primary quotes that were 60% lower in premium
while providing the same coverage terms. We were
also successful in placing the additional $45 Million,
building on the significant premium reduction
throughout the tower.
©2016 CRC Insurance Services, Inc., CRC of California Insurance Services, CA Lic No 0778135. CRC Swett is a division of and operates under the licenses of The Swett & Crawford Group Inc., CA License No 0532269. No claim to any
government works or material copyrighted by third parties. Nothing on this website constitutes an offer, inducement, or contract of insurance. Financial strength and size ratings can change and should be reevaluated before coverage is
bound. This material is intended for licensed insurance agency use only. This is not intended for business owner or insured use. If you are not a licensed agent please disregard this communication.
For more information, contact your CRC, CRC Swett, or
SCU broker. To find a conveniently located CRC, CRC
Swett, or SCU broker go to crcins.com or crcswett.com.