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AMI's Product Recall Insurance Program Gives Industry Peace Of Mind

Tuesday, September 29, 1998
 

The American Meat Institute’s (AMI) Risk Management Insurance Program has added a new and valuable benefit for the meat and poultry industry: product recall insurance.

Product recalls are extremely costly in real dollars and in damage to a company’s reputation. Not only must a company cover the cost of lost product, but it also must cover expenses incurred by customers, recover lost revenues, rebuild its reputation and manage the effect that the recall may have on sales.

AMI’s new Product Recall Insurance Program offers members coverage against accidental product contamination, malicious product tampering and threat of contamination, as well as brand integrity protection. The program covers expenses associated with the value of contaminated product, lost gross profit, customer recall expenses, rehabilitation expenses, crisis management consulting and public relations expenses.

Companies enrolling in the program are given the broadest coverage available in the industry. In addition to a $25 million capacity, members have a choice of deductibles and are not required to carry coinsurance. Further, coverage is extended to the company’s customers, providing them an additional level of comfort.

The program also provides access to professional crisis management services, from a public relations firm of the company’s choosing, including pre-loss planning and post-loss controls and investigations.

“Nothing is more damaging to a company’s reputation and profitability than a product recall,” said AMI President J. Patrick Boyle. “This insurance program gives meat and poultry companies security in knowing that losses will be covered in a product recall.”

AMI’s complete Risk Management Insurance Program is administered by MacDougall Risk Management and includes the following components in addition to Product Recall Insurance: workers compensation, commercial liability (general and umbrella), property insurance, transit/ocean cargo, business automobile, executive risk, foreign insurance and financial risk. Also available to AMI Supplier Members is the Product Liability Insurance Program.

MacDougall Risk Management offers these programs at special rates for AMI member companies. For more information about the Product Recall Insurance Program or any other insurance programs, contact Eric MacDougall at 800/815-0060 or AMI’s Director of Member Services Jacky Sher at 703/841-2400.

AMI represents the interests of packers and processors of beef, pork, lamb, veal and turkey products and their suppliers throughout North America. Headquartered in Washington, DC, the Institute provides legislative, regulatory and public relations services, conducts scientific and economic research, offers marketing and technical assistance and sponsors education programs.


For more information contact:
Janet Riley
Vice President, Public Affairs
703-841-2400
jriley@meatinstitute.org
James Ratchford
Manager, Public Affairs
703-841-2400
jratchford@meatinstitute.org

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