Food, beverage, and cosmetic manufacturers face growing pressure to identify, eliminate, and respond to carcinogenic risks throughout their supply chain.
But as the scientific understanding of carcinogens has developed, so too has the insurance market's response. In this article we explore the evolution of product recall liability, and how businesses can mitigate complex and evolving carcinogen exposures.
Carcinogens and the evolution of product liability
Mainly originating from the construction and manufacturing industries, the asbestos crisis of the 1970s and 1980s heavily influenced the product liability and recall insurance markets. As medical research confirmed asbestos as a carcinogen, liabilities stemming from asbestos exposure created substantial long-tail liabilities for casualty insurers.
In response, insurers began excluding carcinogen and asbestos-related claims from standard liability policies. When the standalone Product Recall market emerged during the 1990s, it inherited many of the conditions traditionally found in the liability market, including broad carcinogen exclusions and manifestation period restrictions.
However, this approach appears somewhat inconsistent. Product Recall policies are written on a claims-made basis, rather than a claims-occurring basis – meaning the same long-tail exposure concerns do not necessarily arise.
Over time, changes to market conditions have led to insurers gradually offering cover. Many insurers have extended or removed manifestation periods and broadened coverage for certain ‘known carcinogens’. As the product recall market has further matured, insurers have also started to offer some carcinogen-related cover in certain circumstances.
Recent examples of carcinogen contamination
Carcinogen contamination remains a key reason for companies triggering product recalls – particularly in cosmetics and the food and beverage sectors. Key examples of this include:
In 2026, skin care product line CeraVe, a subdivision of L'Oréal, faced six class action lawsuits (opens a new window) because some of its products tested positive for a known carcinogen, benzene. In March 2025, L’Oreal recalled all US lots (opens a new window) of La Roche-Posay’s Effaclar Duo acne treatment due to benzene contamination. The FDA also announced a number of voluntary recalls (opens a new window) of several other benzoyl peroxide acne products after testing found elevated levels of benzene contamination.
In 2023, Johnson & Johnson faced lawsuits alleging its baby powder was contaminated with asbestos (opens a new window).
In 2022, multiple food safety authorities issued recalls (opens a new window) for specific batches of Häagen-Dazs ice cream after detecting trace levels of 2-chloroethanol (Group 3 carcinogen) – a reaction product of ethylene oxide, which has been classified as a Group 1 carcinogen.
Write-backs
Over the previous decade, product recall insurers have begun offering write-backs to reduce policy exclusions for known carcinogens, and provide clients with crucial protection from carcinogen contaminations.
Typically, the write-back provides cover in specific scenarios, such as where a product has been accidentally contaminated with a carcinogenic substance or there is a genuine food safety or product contamination event requiring a recall.
Crucially, the write-back amends the exclusion so that Group 1, 2A, and 2B carcinogens are not excluded from Accidental Contamination or Government Recall cover. However, all Group 3 and 4 carcinogens are not in scope of the write-back and remain excluded.
How are carcinogens classified?
The product recall market leans on the International Agency for Research on Cancer’s (IARC) grouping and research for what agents are classified as carcinogenic.
The IARC’s classifies carcinogenic agents on the strength of evidence that they can cause cancer – not their risk at normal exposure. IARC classifications describe hazard, not risk, categorising carcinogens in the following groups:
Group 1: carcinogenic to humans Sufficient evidence that the agent causes cancer in humans. Currently, 135 agents are recognised, with benzene, asbestos, and processed meats key examples.
Group 2A: probably carcinogenic to humans Limited evidence in humans, but sufficient evidence in animals. Currently, 98 agents are recognised, red meat is a key example.
Group 2B: possibly carcinogenic to humans Some evidence exists, but it is less conclusive than Group 2A. Currently, 326 agents are recognised, aloe vera whole leaf extract is a key example.
Group 3: not classifiable as to its carcinogenicity to humans While available evidence is inadequate to determine whether it causes cancer, this does not mean it is safe. Currently, there are 499 agents recognised.
Group 4: probably not carcinogenic to humans Evidence suggests the agent is unlikely to cause cancer, but this category is rarely used.
Future considerations and remaining vigilant
Typically, potential carcinogenic contamination occurs through inadequate cleaning or cross-contact between raw and finished products. An example of this is etholene oxide, which is used to sterilise medical devices and food ingredients. In the past, residual contamination has led to widespread recalls of spices, herbs, sesame products, and healthcare products.
Companies that outsource manufacturing are at greater risk as they may lack adequate oversight and quality control over their product. Manufacturers are only as strong as their weakest supplier; robust controls and supplier verification procedures are essential to limiting the risk of carcinogen contamination.
In the Product Recall market, microplastics represent an emerging area of concern. Scrutiny is increasing over whether certain microplastics may contain or carry chemicals with carcinogenic potential. However, much of the current research remains inconclusive, and there is no definitive scientific evidence establishing a direct causal link between microplastic exposure and cancer in humans. As a result, food and cosmetics manufacturers should remain vigilant to this evolving risk and continue to monitor developments in scientific research, regulation, and liability exposure.
Within the cosmetics sector in particular, regulatory scrutiny is already increasing. The Food and Drug Administration (FDA)’s authority has already been significantly expanded through the Modernization of Cosmetics Regulation Act of 2022 (MoCRA). The legislation introduced enhanced requirements around product safety, facility registration, adverse event reporting, and recall authority, creating greater oversight of cosmetic manufacturers and clearer obligations to investigate and report potential safety concerns.
Product recall insurance
Product recall policies are typically triggered due to threat of bodily injury from either an error by the supplier, the insured, or someone acting on behalf of the insured.
Protecting products from the point they come into the insured’s control through to the end consumer, Product Recall Insurance helps to mitigate financial impact, safeguard brand reputation, and maintain customer confidence, by providing indemnity for losses arising from the actual or potential contamination, defect, or mislabelling of a product for the following:
First and third-party recall costs
Replacement costs
Consultancy costs
Brand rehabilitation
Business interruption and third-party financial loss
Further insights are available via our Product Recall and Reputational Risk (opens a new window) page.
