Insurers could see a boom in the product recall market after Cadbury's recalled thousands of Easter eggs because they carried incorrect labelling, a leading lawyer has predicted.

Mark Kendall, a partner with law firm Reynolds Porter Chamberlain said: "High profile recalls like Cadbury's will encourage board members to take out cover because they will help manage the process, protect the brand and cover a dip in profits.

"Historically this has been a small market but it has grown significantly in the last two years," Kendall added.

Loss adjuster Equijust, is handling the Cadbury recall, while AIG is believed to provide at least part of the cover.

It is the second product recall issued by the chocolate manufacturer within a year.

Last year's food scare involved chocolate contaminated with salmonella being put on the market. Analysts believe the national health alert cost the company between £20m and £30m.

Lockton executive director Ian Harrisson said: "A standard policy would respond to this type of event given the potential risk of a severe allergic reaction."

No one from Equijust was available for comment. AIG declined to comment.