BestWeek: How Insurers Could Help Peanut Butter Out of Its J

 

Monday, Mar 09,2009, 2:42:37 PM   Click:

BestWeek: How Insurers Could Help Peanut Butter Out of Its Jam Caroline J Saucer

The recent recall of more than 2,100 products containing peanut butter potentially contaminated with salmonella highlights how companies can use insurance to protect themselves from recall costs, industry experts said in this week's BestWeek U.S./Canada.

"Product recall or product contamination insurance is a quickly growing area of insurance overall. It's probably growing by 30% a year," said William W. Harrison, managing director of Aon's Crisis Management Practice. The total market for recall insurance is estimated by those in the industry to be from about $150 million to $250 million. The industry generally offers limits of up to $50 million per policy, BestWeek reported.

In BestWeek Europe, the announcement by Lloyd’s insurer Beazley Group plc that it will move its domicile from London to Dublin adds another dimension to what is developing into something of a merry-go-round in the London insurance market.

Also in BestWeek U.S./Canada, State Farm agent Craig Dewhurst is telling his clients to "hold tight" until State Farm Florida mulls the conditional approval it received from regulators of its plan to withdrawal from the property insurance market. Like other State Farm agents in the state, Dewhurst is holding tight as well. BestWeek is published by the A.M. Best Co. for insurance professionals. To subscribe, visit http://www.ambest.com/sales/BestWeek.

Founded in 1899, A.M. Best Co. is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.
Copyright © 2009 A.M. Best Company, Inc. The recent recall of more than 2,100 products containing peanut butter potentially contaminated with salmonella highlights how companies can use insurance to protect themselves from recall costs, industry experts said in this week's BestWeek U.S./Canada.