Product Recall insurance is like a safety net that mitigates financial and reputational risks in case of unexpected issues
Product Recall insurance can help protect your business by providing coverage for costs associated with a product recall. You can rest assured that these costs will be covered, allowing you to focus on getting your business back on track without worrying about the financial impact. We offer Product Recall Expense coverage and Additional Covered Expenses coverage to help mitigate the financial consequences of a product recall.
What is Product Recall Expense coverage?
Product Recall Expense coverage provides coverage for the expenses incurred in a recall or withdrawal of a product from the marketplace.
Product Recall Expense coverage includes:
- Communication of the product withdrawal by phone calls, mailings, and advertisements.
- Overtime pay and temporary staff increases.
- Disposal of the recalled product.
- Transportation, shipping, packaging, and storage cost of the recalled product.
What is Additional Covered Expenses coverage?
Additional Covered Expenses coverage covers other costs a policyholder may incur as part of withdrawing a product from the marketplace. These consist of:
- Loss of profit incurred by direct customers.
- Advertising costs to regain customer approval.
- Essential costs of repairing, replacing, repurchasing, removing, redistributing, or refunding products for direct customers.
- Inspecting and testing the recalled products.
To qualify for our Additional Covered Expenses coverage, policyholders must purchase our base Product Recall Expense coverage.
What doesn’t our Product Recall insurance cover?
There are a few risks our Product Recall insurance does not cover. Those exclusions include:
- The product sold failed to accomplish its intended purpose.
- A product is withdrawn from the market due to an expired shelf life.
- Loss of customer approval.
- Deterioration, decomposition, or chemical transformation of the product.
This is not a comprehensive list. Please contact your independent insurance agent for further details.
SECURA operates in 13 states with a variety of business insurance solutions, and we are proud to support the communities that have welcomed us for more than a century.