The insurance not only covers costs associated with a product recall, ranging from withdrawal expenses to the policyholder's loss of profit, but also places an emphasis on risk prevention and emergency response. Included in the premium is a free initial consultation with crisis managers as well as an allocation for risk improvement work such as recall and crisis planning. For this, the XL Insurance London Casualty Unit has teamed up with specialist consultancies based in the UK and US offering expertise in areas such as public relations, product security, laboratory services and regulatory advice. In the event of a contamination the insurance gives policyholders priority access to the consultants.
XL Insurance Senior Underwriter for Product Recall, Ed Mitchell, said: "The food and drink industry is experiencing a rise in product recalls and we are pleased to meet the growing demand for coverage in the market. With increasing regulatory scrutiny and public interest in food safety, companies are as much concerned about protecting their brand and reputation as the immediate financial impact. Our insurance is designed to help manage the crisis and protect the policyholder's good name as well as covering the costs relating to the recall.
"For this cover we are delighted to have teamed up with one of the UK's leading food and drink crisis management consultancies, Razor PR."
According to Chris Woodcock, Managing Director of Razor: "A company's brand and reputation are valuable assets, yet they can easily be destroyed if a crisis is not managed properly. The world of risk communications, brand protection and crisis management demands a diverse and innovative approach and we believe there is huge demand for first class, practical, and comprehensive support such as this."
XL Insurance Company Limited offers primary capacity of EUR 10 million (£6 million) and excess capacity of EUR 25 million (£15 million). The group also underwrites product recall insurance for other consumer goods companies. Further coverage is provided via Lloyd's syndicate #1209, managed by XL London Market Ltd.
About XL Insurance "XL Insurance" is the global brand used by XL Capital Ltd's insurance operations. XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance, reinsurance coverages and financial products and services to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. As of September 30, 2006, XL Capital Ltd had consolidated assets of approximately $59.8 billion and consolidated shareholders' equity of $9.5 billion. More information about XL Capital Ltd is available at www.xlgroup.com.