Risky Business

May 2012

People On Hand

Welcome to this month's edition of "Risky Business".  

This month we discuss Product Recall Insurance and Contaminated Products Insurance. Read more below.   


Also, next month is the "Wilston Winter Magic Fair".


  Insurance News 

Lemon Car
Have you considered Product Recall Insurance?


Product Recall is a very real and concerning risk to any business that manufactures or distributes products. While it is recognised it is not cheap by many of our clients we recommend this cover to, there is a very good reason for this. There are numerous claims and they are very expensive.
The impact from a product recall, if not managed correctly, can emerge rapidly and threaten your business, employees or customers. Contamination in products continues to create havoc for consumers and business around the globe. Whether the contamination is accidental or the result of a product tampering, there is an insurance solution available which protects all aspects of the food, beverage, cosmetics and pharmaceutical industries.  



Product recalls are not the most common of claims but the financial impact can be severe. Regardless of how good a client's procedures and testing may be, all it takes in many instances is for one employee to have a lapse in concentration and suddenly an incident has occurred. This one mistake can often lead to substantial loss.
Not all incidents are unintentional or accidental. Recalls can also occur because of malicious tampering. There are many high profile cases of products being tampered with on the shelves. However, of even more concern for companies, should be "internal tamper" on the production line. These tampers do not always receive the same publicity but can have an extreme impact on a company. In most of these cases, the procedures and controls a client has in place will have little or no impact on the likelihood of a tamper, because it is willful action rather than an accident which causes it.   
Below are some actual examples of the potential financial impact of an incident:

Product Recall 


Bad Egg
What is Contaminated Products Insurance?


In the event of an Accidental Contamination, Malicious Product Tamper or Product Extortion, a Contaminated Products Insurance policy can provide financial protection to businesses in the food, beverage, pharmaceutical and cosmetic industries including:
  • Business Interruption
  • Replacement Costs
  • Recall Costs
  • Third Party Recall Costs
  • Consultants and Advisor Costs
  • Rehabilitation Expenses
  • Extortion Costs
One of the biggest misconceptions is that product recall coverage is available under a standard public and products liability policy. In most of these policies, product recall is excluded. If some limited cover is provided via recall expense cover, the coverage limit provided is normally very small compared to the overall exposure.
As public and products liability policies do not cover the client's own losses, there is no cover for replacement of the product, additional expenses to re-establish sales or loss of profit as a result of an Insured Event.   


People on Hand
What assistance can I get if I have an accident?


One of the most important benefits under a Contaminated Products Insurance policy is the expert specialist crisis response consultants payable under the Consultants and Advisor Costs section of the wording. The consultants can help the client respond swiftly and effectively to a product contamination incident, as well as planning for and managing the risks associated with a potential incident.
The expert consultants available include food technologists, malicious product tamper experts, crisis management experts and public relations assistants.
For more information, please click here.   


Wilston Winter Magic Fair
The "Wilston Winter Magic Fair" is on Sunday, 3rd June 2012 and CPR Insurance Services are proud to be one of the sponsors and participants. 
The streets are closed around the Village for the day and the community comes together for partying, market stalls, amusements and other entertainment. Mark it in your diary now and we look forward to seeing you there! 

  Joke of the Month 

Trouble Inn Dublin
Trouble Inn Dublin


Paddy and Mick leave the pub. Mick says, 'I can't be bothered to walk all the way home.'


'I know, me too', replies Paddy. 'But we've not money for a cab and we've missed the last bus home.'


'We could steal a bus from the depot,' proclaims Mick.


They arrive at the bus depot and Paddy goes in to get a bus while Mick keeps a lookout.


After shuffling around for ages, Mick shouts, 'What are you doing? Have you not found one yet?'


'I can't find a No. 91', responds Paddy.


'Oh Jeepers Creepers, ye tick sod, take the No. 14 and we'll walk from the roundabout'.





See you next month.




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