XL Insurance (Bermuda) Ltd (“XLIB”) today announced the launch of its new broad-form Product Contamination policy. To coincide with the launch, XLIB will be hosting a seminar on September 8th to address current regulatory and food safety issues in North America as well as to present the new policy.
XLIB has been recognised historically for offering clients broad and tailored catastrophe coverage solutions. The company, with financial strength ratings of A from both A.M. Best and Standard & Poor’s, offers clients up to US$50 million in limits excess of a US$10 million minimum attachment point. All product recall policies are backed by many years of XLIB’s specialized experience in handling complex and high profile claims.
XLIB’s new policy has been developed to address the ever evolving regulatory and food safety environment that many North American food and beverage companies face today. The policy goes further than standard Product Contamination policies by offering coverage for government recalls including mandatory or forced recalls.
XLIB Chief Casualty Underwriter Beth Piggott said: “The launch of our new policy and this seminar comes at a critical time. The last few years have seen a significant rise in the frequency of recalls in North America combined with a noticeable increase in the size and scope of the recalls and a corresponding increase in financial severity. These recalls are under growing scrutiny from regulators. The August 18th recall of 380 million eggs in the US is a typical example of this trend. In addition to the pro-active stance taken by the US Food and Drug Administration we also think it likely that the proposed Food Safety Enhancement Act could pass into law in the relatively near future. This would give regulators authority to mandate recalls and will put food and beverage companies into unchartered waters in terms of the food safety environment in which they are operating. XLIB has been writing Product Contamination business for over ten years and we have used this experience to re-engineer our policy to provide broad and contemporary cover to respond to today’s challenging regulatory environment and the growing capacity needs of companies seeking higher limits.”
Highlights of the 2010 XL Product Recall Form includes:
- Accidental Contamination
- Malicious Contamination
- Product Extortion
- Forced and/or Government Recall
- Adverse Publicity
- Priority 24/7 crisis management through “Response XL”
Patrick Tannock, XLIB President, said: “XLIB has a proven track record of responding to our clients needs with new and enhanced products. When combined with our claims handling expertise we are confident that our new Product Contamination policy will provide solutions and certainty for our clients in an increasingly dynamic landscape.”
Speakers at the seminar include Joseph Bermudez, Partner and Head of Crisis Management at the law firm of Nelson, Levine de Luca & Horst; Simon Oddy, Partner at RGL Forensics; and John Turner, VP at the global claims services company McLarens Young International. These industry experts will provide insight into the latest developments in the product recall environment and give practical analysis of a recall claim and investigation.
The seminar will also address the importance of crisis management for companies facing a product recall situation and how XL Insurance’s unique service, Response XL, works with clients to address the current food safety challenges. XL Insurance underwriters will present an overview of the new Product Contamination policy.
The seminar will be held from 9:30 a.m. to 1:00 p.m. at XLIB’s offices at One Bermudiana Road, Hamilton, Bermuda. The seminar is open to brokers and their clients. Policy highlights are summaries only. Please contact your Bermuda-based broker for a copy of the 2010 XLIB Product Contamination Policy Form.
Source : XL Press Release
