Specialty

HM has extensive experience with the various underwriters and coverage forms available from global markets that provide Product Recall Insurance. We have also been a catalyst in the evolution of the two traditional forms of this type of insurance, the First Party Accidental Contamination and Malicious Tampering (ACMT) form originating in London and the Third Party Customer Liability (TPCL) form originating in the US. While both forms have always covered basic first and third party recall expenses, the ACMT form does not provide coverage for third party (customer’s) loss of income, but does provide first party loss of gross profit. On the other hand, the TPCL form provides coverage for third party loss of income, but not first party loss of gross profit. Now there are a couple carriers willing to provide the ACMT form with a Customer Loss of Profit endorsement. Prior to the availability of this combined form, HM customized placements for its clients utilizing both forms and carving out the coverage and cost of the areas that overlapped.