Product Recall Insurance

Protect your business from unexpected loss with Product Recall insurance.

As the owner of a manufacturing business, your main focus is to produce quality products that meet the needs of your customers. Product recalls, although unfortunate, are a risk of operating a business. Products may develop defects when manufactured that could cause harm when sold and distributed to consumers. All businesses, large and small, are at risk of this happening.

How can you help protect your business from expenses incurred from product recalls? Consider our Product Recall insurance, with coverages designed to protect your business. 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  • A product is withdrawn from the market due to an expired shelf life.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 detail.

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Is our Product Recall insurance a fit for your business? Contact your SECURA independent insurance agent for more information, and to find the best coverage option for you.

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