A massive egg recall is occurring throughout the United States. Millions of shell eggs are suspected of being infected with Salmonella Enteritidis. The recall is countrywide and the Food and Drug Administration has regular updates and explanations of the recall.

Is there business insurance for such an event?

Typically, product liability insurance will cover only third-party claims. This means claims from those outside of the business claiming to have been injured by the product. But, massive product recalls involve expenses beyond potential claims such as loss of revenue, business interruption, and costs associated with the recall. Those costs are generally not covered in a traditional product liability policy.

Contaminated products insurance is a type of business insurance coverage that fills the gap. The coverage is designed to cover those costs associated with contaminated product recalls. Some insurers also offer disaster containment consulting services as a part of the coverage and coverage designed to restore the product to a safe condition.

Contaminated products coverage is something to consider for your company if it will be involved in the food, medicine, or restaurant business at any level of the supply chain.

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