XL Insurance (Bermuda) Ltd. (XLIB) will next week hold a seminar on dealing with food product recalls as it launches of its new broad form Product Contamination policy.

The event, which will take place next Wednesday at XL House in Bermudiana Road, is timely, following last month's recall of some 380 million eggs in the US in connection with a salmonella outbreak.

In a statement released yesterday, XLIB said the policy had been developed to help North American food and beverage companies address address the evolving food safety regulatory environment, by providing coverage for recalls, including those mandated by government.

"The last few years have seen a significant rise in the frequency of recalls in North America combined with a noticeable increase in the size and scope of the recalls and a corresponding increase in financial severity," said XLIB chief casualty underwriter Beth Piggott.

"These recalls are under growing scrutiny from regulators. The August 18 recall of 380 million eggs in the US is a typical example of this trend.

"In addition to the pro-active stance taken by the US Food and Drug Administration we also think it likely that the proposed Food Safety Enhancement Act could pass into law in the relatively near future. This would give regulators authority to mandate recalls and will put food and beverage companies into uncharted waters in terms of the food safety environment in which they are operating."

The policy covers both accidental and malicious contamination, product extortion, forced and government recall, adverse publicity and round-the-clock crisis management through "Response XL".

Speakers at the seminar include Joseph Bermudez, partner and head of crisis management at the law firm of Nelson, Levine de Luca & Horst; Simon Oddy, partner at RGL Forensics; and John Turner, vice-president at the global claims services company McLarens Young International.

These industry experts will provide insight into the latest developments in the product recall environment and give practical analysis of a recall claim and investigation.

Wednesday's seminar will be held from 9.30 a.m. to 1 p.m. The seminar is open to brokers and their clients.