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Product contamination insurance will generally provide coverage for the following: Recall costs, including laboratory analysis and product transportation. Announcement costs, such as radio, television and Internet placements. Third-party recall expenses.
Contaminated Product means Product that has one or more of the following characteristics: (a) contains foreign substances not inherent or naturally occurring in Product; and/or (b) fails to meet Operators minimum specifications.
While product liability insurance provides protection against the costs associated with lawsuits, it does not cover the costs associated with recalls. To obtain this important coverage, your company must purchase product recall insurance.
Product Recall insurance can help a company recover from financial loss due to the recall of a defective or unsafe product from consumers or distributors, while Contaminated Products insurance addresses accidental or malicious tampering of products that could result in bodily injury or property damage losses.
Spoilage and contamination insurance helps businesses pay for costs associated with perishables that are spoiled or contaminated in any type of event specified in the insurance policy. However, it does not include product contamination at the source of production.
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Product recall policies cover the potential fallout of such an event by providing comprehensive cover for you and your business, whether the event is triggered by a manufacturing error, a product safety issue, or other scenarios such as animal by-product or allergen mislabelling.
For example, lets say a customer buys a power tool that your business manufactures. A defect in the tool ends up injuring the customer, and they sue your business. Your general liability insurance policys product liability insurance helps cover: The customers medical costs to treat their injury.

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