Product Recall

Product Recall Insurance – What is it?

Product recalls continue to be a growing concern for manufacturers and consumers.Now there has never been a better time to consider product recall insurance. Can you afford not to cover yourself for this risk?

Product Recall Insurance can protect business from the devastating effects of such incidents by providing coverage for those expenses that occur before the product defect has resulted in damage to a third party.

 What can be covered?

The recall of your product in the market as a result of:

  • Defect
  • Government Recall
  • Malicious Product Tampering
  • Product Extortion

Given the cost of a recall can be incurred by the manufacturer and importer right through to the wholesaler, distributor, exporter or retailer, you need cover right across the supply chain.

Most traditional recall extensions do not provide cover for the major costs of a recall such as Business Interruption, Replacements Costs, Rehabilitation Expenses or Extortion. It has been the case that these extra covers can account for almost 65% of the total cost arising from a particular Product Recall.

The policy covers the key expense areas which arise following a recall including:

  • Business Interruption
  • Replacement Costs
  • Recall Costs
  • Consultants & Advisors Costs
  • Rehabilitation Expenses
  • Third Party Financial Loss
  • Extortion Costs

The policy also provides cover for the costs and expenses involved in engaging expert independent consultants & advisors who can assist in guiding the company through the critical first few weeks of an incident.

Examples of Product Recall situations

Recalls in the USA

Read our Product Recall FAQs

 Who can help?

An Insurance Broker who specialises in this cover can find the right Insurer for you with the most appropriate policy wording. An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you with their skill, market knowledge and experience. Call a good one.

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