Some specialist Product Recall policies can include cover for malicious product tampering.

This is different from an accidental manufacturing or contamination event.

What is malicious tampering? #

The precise definition varies, but it generally involves intentional and malicious alteration or contamination of an insured product.

This could potentially occur:

• During manufacturing.
• During storage.
• Within the supply chain.
• After products reach the market.

What can the policy cover? #

Depending on the wording, cover can include certain costs associated with:

• Recalling affected products.
• Investigation.
• Product testing.
• Crisis management.
• Customer communication.
• Disposal.
• Replacement.
• Lost profit.

Some specialist policies may also address certain extortion-related circumstances.

What if tampering is only threatened? #

Some policies can address specified threats of malicious tampering even before actual contamination is confirmed.

The policy definition and insurer requirements are important.

Should suspected tampering be reported immediately? #

Yes.

Where malicious tampering is suspected, prompt notification is important.

The business may also need to involve:

• Police.
• Regulators.
• Product safety specialists.
• Crisis management advisers.

Do not assume substantial response or recall costs should be incurred without first notifying the insurer where circumstances allow.