American International Group Inc. (AIG), announced this week that they have launched a new Web-based service called NOVI to help companies estimate the cost of recall incidents. The insurer also is set to expand their available accidental contamination coverage limits to $35 million. NOVI provides food and beverage companies an estimate of their probable maximum recall loss in the event of product contamination, and it uses more than 80 data points and a methodology based on the insurer's experience providing contamination insurance, analysis of recall incidents and input from a food safety consultant, NSF International.
"NOVI helps food and beverage manufacturers make more informed decisions about how to manage their risk," Nicky Alexandru, vice president of crisis management, global casualty, AIG property/casualty, said in the statement. "These companies are generally aware of the frequency of product recalls. However, they are unsure of the potential magnitude of financial impact from a recall event." To read more, click HERE.