Australian insurers may be the group hardest hit by Pan Pharmaceutical’s multi-million dollar recall of vitamins and other pills and potions. The company may be eligible to make a claim from its insurer Liberty Mutual, but Liberty’s not commenting.

National Insurance Brokers Association Technical Services Manager Warren Turner said he expects some retailers using Pan products will have product recall insurance, “although it’s not a very common form of cover”.

“It’s reasonably expensive and it’s for that reason that it’s not all that popular,” Mr Turner said. “But a situation like this really highlights the need for businesses to take this kind of cover seriously.”