Product Recall

Product recall insurance is an optional endorsement that can be added to a business insurance policy to help protect a company from financial losses associated with a product recall. It can cover a range of expenses, including:

Direct recall costs

Replacement costs

Loss of revenue or contract

Consultancy costs

Third-party financial loss

Notification of customers

Shipping costs

Warehouse and storage expense

Cost to dispose of products

Cost of extra personnel required to conduct the recall

Product recall insurance can be triggered by actual or imminent bodily injury or property damage. It can cover a recall that is voluntary or involuntary, such as when a government agency requires it. However, it does not cover customer lawsuits resulting from the recall.