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The benefits of Defective Products insurance from AIG

Wide protection

Our cover meets recall and 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.

Contaminated Products insurance

For manufacturers, retailers and distributors of topical or ingestible products like food, drinks, cosmetics, pharmaceuticals and tobacco.

Brand protection

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.

 

Product Highlights

Defective Products Insurance

Cover is triggered by the recall of a product including a governmental recall caused by:
  • A defect in the product
  • Malicious product tampering
  • Product extortion

provided that the use of the product has the potential to cause bodily injury and the recall is legally mandatory.

Product Defect

There is a product defect if on an account of is nature a product is likely to cause personal injury and there is therefore a statutory obligation to recall the product.

The presence of a product defect must be established

  • with sufficient probability by a sufficiently-large random sampling result or an account of other objective facts or
  • by an official injunction.

Malicious Tampering

Any actual, alleged or threatened, intentional, mallitios and wrongful alteration of the Insured's product so as to render it dangerous for use or to create such impresion to the public, whether caused by employees or not.

Cover includes

  • The Insured's recall costs
  • The costs of replacing the defective product
  • Consulants' and advisors' costs
  • Loss of the Insured's gross profit
  • Product extortion costs
  • Defence costs
  • Brand rehabilitation costs
  • Third party recall and replacement costs

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.

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.

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.

Claims

AIG has qualified and very experienced claims expertise throughout Europe whose core role is to help our clients and manage the claims process from start to finish.

In the event of a loss, our Swiss claims teams are on hand to:

  • Deal with claims enquiries quickly and accurately and help our clients in the very best way within the scope of the insurance contract.
  • Work closely with our clients and brokers to help minimize the financial and reputational impact of a loss.
  • Comply with our client’s needs for service and communicate with clients and their brokers on how the claim will progress.

Our claims department can be contacted via e-mail claimsCH@aig.com

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