Ace and AIG are among the major insurers who will have to foot the bill for Britain's biggest ever product recall, which could cost the insurance industry over £100m.
Loss adjuster Cunningham Linds …
AIG is one of the major insurers who will have to foot the bill for Britain's biggest ever product recall, which could cost the insurance industry over £100m.
Loss adjuster Cunningham Lindsey is also involved in the claim relating to cancer-causing drug Sudan 1, acting on behalf of one of the affected importers.
The recall has led to the withdrawal of over 400 products from supermarket shelves, including Walkers crisps, Pot Noodles and Crosse and Blackwell's Worcester sauce.
Cila President Andy King said that while many of the major retailers will be self-insured, retailers such as Sainsbury's, Waitrose and Asda will be looking to pass liability back to supplier's Premier foods.
Premier will be looking to draw on its product recall policies, to cover the costs of recalling and disposing of the contaminated goods, and claiming for crisis management, public relations and possibly even losses to gross profit, said King.
He said: "Product liability and recall policies are traditionally very expensive and cover is narrow, often only covering substantial claims. This certainly looks like a substantial claim."
He added: "The majority of product liability insurers will be looking to pass costs back to Premier Foods."
