Product Recall Insurance

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Manage Product Emergencies with Recall Insurance

A single defective product can lead to massive financial losses, reputational damage, and legal claims. Whether it’s a manufacturing defect or contamination risk, recalls demand swift action and substantial costs. Product Recall Insurance ensures you’re covered for the expenses of removing faulty products from the market—without putting your business at risk.

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    The Hidden Costs of a Product Recall

    A Recall Doesn’t Just Take Back Products—It Takes Away Profits.


    Recalling a product is more than just pulling it off shelves—it involves investigation, transportation, disposal, and crisis management. Without Manufacturer Recall Insurance, these costs can overwhelm your business. 

    What’s Covered in a Product Recall Policy?

    • Logistics & Disposal Costs: Covers transportation, storage, and destruction of recalled products.
    • Crisis Management Support: Public relations coverage to protect your brand reputation.
    • Associated Expenses: Investigation costs, travel, and accommodation for recall management.
    • Third-Party Recall Liability: Covers costs if your product is a component of another company’s product.

    Full Protection Beyond Just Recalls

    Associated recall costs

    An product recall can lead to substantial expenses. Often there are expenses associated with a recall like the cost of investigation, disposal, travel and accommodation. To ensure adequate cover buy your recall cover from an trusted expert.

    Replacement Cost

    While replacement is not an intended cover some insurers may agree to cover the cost of replacement. It is good to ask for a replacement cover possibility in a recall policy when you foresee the same in your business.

    Rehabilitation Cost

    The aftermath of a recall may require substantial cost in restoring lost contracts, regaining market share and restoring market confidence. An recall policy should provide for a cover for all such expenses to restore your business.

    Third Party Recall

    You may be supplying products which becomes a part of your customers product before they are sold. A defect in your product with a potential to cause damage can make you responsible to the cost of recall of you customer’s product.

    Product Guarantee

    Some insurers may on specific request provide a cover for recall of a product which fails to meet its guaranteed terms of performance. This is a specific cover given by insurers to specific products for reputed manufacturers.

    Financial Loss

    An event of a recall of the main product is known to drive companies to total financial breakdown, even insolvency. A financial loss protection can also be bought from the insurer to help tide over a financial crisis following a recall.

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