ACE Group today announced its collaboration with red24assist, a global
specialist in risk assessment services, as it launched ACE Global Recall
Protection for mid-market companies within the food and drink industry based in
its Continental Europe region.
ACE Global Recall Protection provides a combination of pre-event risk management
advice and crisis support in the event of an incident, together with insurance
that offers protection from the impact of costly recall incidents. Covered
events include accidental contamination, government recall, malicious product
tampering and product extortion. The proposition is targeted at Continental
European businesses with revenues of up to €1 billion seeking recall cover in
conjunction with other ACE casualty insurance products.
Rosemary Ness, Casualty Manager, Continental and Central and Eastern Europe at
"The risk landscape for Europe`s food and drink industry is marked by
increasingly complex global supply chains, evolving legislation, and a greater
awareness of recall issues on the part of a wide range of stakeholders. At ACE,
we believe that advance planning and robust scenario testing is the best defence
and allows for fast action when the unexpected happens. Our collaboration with
red24assist will help to ensure that our clients have access to advance risk
management advice and the 24/7 expert crisis support they need, in their local
language, in the event of a product contamination or malicious tampering
Key benefits of ACE Global Recall Protection include:
* Limits of up to €10 million for recall cover.
* Cover provided as part of a wider casualty programme at ACE, with limits of up
to €100 million available for non-recall coverage.
* Pre-incident risk management advice from ACE`s own risk engineers and
red24assist as part of the policy.
* 24/7 crisis support, 365 days a year, from red24assist`s experts during a
recall incident involving food or drink contamination or malicious product
tampering, available in 120 languages including all major European languages.
* Assistance in market share re-establishment after an incident through cover of
rehabilitation costs, lost profits and related expenses.
* Access to a dedicated interactive website that keeps clients up to date with
relevant news and insights.
Losses covered include:
* Recall costs (both first and third party depending on class)
* Redistribution costs
* Product rehabilitation and/ or restoration costs
* Destruction costs
* Extortion costs
* Business interruption costs (following a contamination incident) and extra
* Crisis consultancy costs
Products may not be available in all jurisdictions. The product information
above is a summary only. The insurance policy issued contains the terms and
limits of the contract.
ACE and red24assist`s Top Ten Recall Tips for Food and Drink Industry
The following precautionary tips are designed as guidelines to help European
companies prevent or reduce the impact of a recall incident.
1.Develop a product recall plan
Put in place and keep up to date your recall plan. Planning helps clarify roles
and responsibilities so that, in the event of an incident, you don`t waste
valuable time working out what you need to do and who you need to talk to - you
can just get on with it.
2.Maintain an active crisis manual
Develop and regularly test your crisis manual through crisis simulations, both
desk top exercises and real life scenarios involving your management team.
Practice might not make perfect, but evidence from our clients shows that it
certainly helps improve preparedness - and confidence - to deal with an
3.Maintain a HACCP (Hazard Analysis and Critical Control Points) Plan
HACCP is a statutory requirement for food premises in the EU (and almost
worldwide). HACCP is a food safety tool that identifies the risk, requires
critical limits to be set and defines the critical control points which must be
in place to omit or reduce to a safe level the incidence of microbial, chemical
and physical contamination of food.
4.Training is key
Training in all relevant aspects is vital, e.g. food safety, HACCP, health and
safety and environmental control. You should be able to show that you have a
comprehensive training programme in place and you should ensure that new staff
5.Obtain third party accreditation
Where possible, third party accreditation gives you and your stakeholders the
confidence that your preparations meet industry best practice standards and can
be a powerful component of your audit trail.
6.Keep an audit trail
Especially when third party approval is not readily available, you should be
prepared to provide internal audit evidence that you have taken all the steps
you could have been expected to in order to contain your incident.
7.Keep audited and approved food/non-food specifications
Specifications, once agreed and signed, can be considered a legal document and
are often used in proceedings where dispute occurs. But specifications are often
flawed by omitting parts or ingredients which result in withdrawal or recall of
products. They are also often changed without permission of the purchasing
clients and have resulted in an increase in recalls.
8.Build your specialist network
Expert advice from specialists is often critical when the unexpected happens.
Using a network of microbiologists, food chemists, pharmaceutical specialists
and other experts in their field, you can help ensure any crisis is handled more
effectively. Document their details so that you know who to call on in the event
of an incident.
9 Draft and approve your PR statements in advance
In the event of a recall, regulators may expect you to respond incredibly
quickly. Don`t waste time by drafting your communications materials from
scratch. Develop flexible templates that you can roll out fast, allowing you to
focus on other critical areas of communication.
10Finally, don`t panic!
When the unexpected happens, rely on your tried and tested recall and crisis
plans, use your crisis response helpline, and remember to save samples of the
products under recall.
The ACE Group is one of the world`s largest multiline property and casualty
insurers. With operations in 53 countries, ACE provides commercial and personal
property and casualty insurance, personal accident and supplemental health
insurance, reinsurance and life insurance to a diverse group of clients. ACE
Limited, the parent company of the ACE Group, is listed on the New York Stock
Exchange (NYSE: ACE) and is a component of the S&P 500 index.
Communications Manager EMEA
Tel: +44 (0)20 7173 7793
Copyright Business Wire 2013