Product Recall Insurance

16 February 2022
What Is Product Recall Insurance?

Product recall insurance pays for the costs of recalling a product from the market. This insurance policy covers the associated costs, including the costs required to notify the public, pay for the shipping return costs and disposal of the defective or unsafe products, costs for consumer notification, delivery, and liquidation etc.

Who needs Product recall Insurance?
  • Automobile industry
  • Food and beverage manufacturers
  • Toy manufacturers
  • Electronic manufacturers

The risk of a product recall has increased dramatically in recent years due to increasing numbers of global regulatory standards and an almost constant rollout of new product safety rules. Product recall insurance mitigates risk long-term.

Here's the top three reasons to purchase product recall insurance:
  • Recalls Remain High
  • Governmental oversight is stronger than ever.
  • The costs for a recall are prohibitive.

What does Product recall insurance cover?
  • Recall costs
  • Consultant costs
  • Costs of extortion
  • Third party recall costs

  • Product recall insurance covers expenses related to recalling a product once it has been released to the public.
  • Many costs come with a product recall, like shipping costs, warehouse costs, disposal costs, and restocking costs. These expenses can be covered by this insurance.
  • The risks of product recalls have increased over the years due to more stringent global regulatory rules and safety requirements.
  • Product recall insurance is intended to protect companies from financial loss and bankruptcy resulting from product recalls