Product Recall insurance
Why do I need product recall insurance?
In recent times, we have seen a series of product recall scandals, such as contaminated food and toxic materials in children’s toys. Product Recall Insurance covers the cost of recalling a product that has a dangerous defect, has been maliciously tampered with or is subject to malicious threats of contamination.
Who needs this type of insurance?
- Manufacturers
- Retailers
- Component part suppliers
- Wholesalers
- Distributors
What should my insurance cover?
Many policies can be extended to include a range of benefits such as:
Payment of fines & penalties
Payment of ransoms & extortion
Cover for lost or disrupted income
Cover for physical injury/damage
The cost of phone hacks
Cost of notifying your contacts
Incidents at your outsourced service providers
Social media risks
The cost to your business should you be compelled to recall a dangerous product can be vast. A comprehensive product recall policy will cover the costs of recalling the product (including from down the supply chain), replacing the product, lost profit, public relations and brand rehabilitation – all coordinated by a disaster management specialist.
Product recall, or contamination, will only work if the product is potentially dangerous. If it is just faulty, you will need product guarantee insurance.
