Purpose of Product Recall Insurance
Product Recall or Accidental Contamination Insurance offer specialized coverage typically excluded in standard liability and property insurance policies.
Increased US Government regulation of manufacturers and importers of food and beverage products, makes this coverage more valuable than ever. Don’t just assume it is to expensive!
The process to get a quote is not complicated but will go more smoothly if:
- You have the time to fill out the application
- Your company has a written recall plan
One of the benefits of most policies is access to consultants who can help with your plan and be there in case of an actual event.
No Standard Policy
Product Recall policies differ, there is no standard contract language, so it is helpful to have someone familiar with the coverage to help shop for terms and premiums that meet your needs.
Take the time to understand what triggers coverage because there are many definitions to review.
First party product recall expenses
Can your company take the risk?
Your company can incur expenses to
- Advertise & Notify
- Destroy Product
- Replace Product
- Loss of Profit
- Consultant Costs
Third party product recall expenses
Contracts can pass on the cost of a recall from your vendors. Have you checked your contracts?
Do they say things like “any and all expenses” or do they specifically address product contamination issues?
What if your vendor has to pull your product from the shelf, transport it or destroy it? Will they send you the bill?
Where it all Begins
Insurance Reimburses You
Application Answers Matter
Must be Insured Event
Only covered loss costs
What Happened and When
Malicious Product Tampering
What is a Loss?
Costs Reimbursed by Policy