The client is notified by The Canadian Food Inspection Agency (CFIA) that one of their retail products is contaminated with salmonella. Numerous customers have sustained serious injuries and the product must immediately be pulled from shelves.
HUB International HKMB, with a representative from the client’s insurance company, meets with the client the following day to determine:
- If the incident will trigger any portion of property coverage to indemnify the insured for the cost of the product that must be destroyed
- How to efficiently respond to the Third Party Liability claims
- Determine the responsible party (supplier of the product), so that their insurer may be notified.
From the meeting the following is determined:
- That the product can be destroyed immediately to avoid any contamination of other stock
- That the client is not liable for the contamination
- The responsible party for the contamination and subsequent injuries is a supplier in the United States
HUB HKMB then assists its clients with the reporting of all claims to their insurer so that claimants are responded to in a prompt manner turning a potential disaster into a customer relations opportunity. Claims for reasonable demands are settled immediately by the client’s insurer. When the supplier’s insurer agrees to accept the handling of all claims, HUB HKMB monitors the client’s insurer to make sure that all claims are transferred.
Outcome:
The supplier indemnifies the client for the lost product
- All open and paid claims are transferred to the suppliers insurers
- All reserves and payments are removed from the client’s loss history
- Future cost of client’s insurance is not effected by the incident
