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Product Contamination

Nicky Alexandru

Senior Vice President, US Head of Crisis Management

Tel: +1 929 265 3750

Aspen Product Contamination Insurance can help businesses respond and recover quickly if they need to recall a product because of contamination or malicious tampering.

We offer market-leading insurance coverage and expert crisis management consultancy that can help our clients navigate all stages of a product recall crisis.

We go beyond providing financial protection because we understand the importance of successfully handling the multiple decisions involved in a product recall.

The increasingly global and complex food supply chain, better contamination detection technology and greater governmental scrutiny have all led to a rise in food recalls.

The average direct cost of a recall to a food company is $10m, not including reputational damage and loss of sales (Source: Food Marketing Institute and the Grocery Manufacturers Association).

Direct costs include recall notification (to supply chain, users and consumers), reverse logistics (product retrieval and storage) destruction costs, and value of condemned product.

Long term loss of sales can follow due to declining customer confidence impacting a company’s brand reputation.

Aspen’s Product Contamination insurance provides 24/7 access to two leading consulting companies –  NSF International and NYA, a GardaWorld company, – which can provide expert advice in all stages of a recall.

The ultimate goal is to ensure the best possible course of action and minimize the long term impact on the company’s brand and reputation.


  • Product Contamination, a broadly defined peril which encompasses accidental contamination, governmental recall and economic product adulteration (intentionally impaired ingredient); and
  • Malicious product tampering (including extortion)
  • Adverse Publicity

Our Product Contamination insurance covers the major cost categories associated with all stages of a product recall:

  1. Assessment phase – crisis consultant costs and costs to validate and ascertain the nature and extent of a contamination.
  2. Recall phase – (recalled) product replacement costs, recall notification costs, storage, reverse logistics, destruction costs and costs incurred in order to execute the recall and provide replacement product, third party costs.
  3. Recovery phase – clean-up costs, loss of gross profit and expense to reduce loss, including marketing and brand rehabilitation costs.