Product recall is a worrying prospect for any business, threatening both a financial loss and damage to a company’s brand and reputation.
Our product recall insurance policies provide comprehensive cover for a variety of industries and recall scenarios, ranging from product guarantees and contractor errors, to cyber product tamper and software product safety.
Product recall cover for consumer products to automotive parts. Covering rectification costs, loss of sales, ancillary costs, and reputation protection for a variety of recall scenarios including cyber product tamper and software product safety
Bespoke cover addressing contaminated food & beverage products. Includes business interruption cover, reputation protection, as well as errors by contract manufacturers.
Bespoke cover addressing contamination events in restaurants
Often, the most challenging and expensive part of a recall is keeping the business operational while facing intense public and regulatory scrutiny. Here are some of the most common costs associated with a product recall.
• Internal or third-party testing
• Employing experts / consultants
• Closing facilities or suspending production
• Cleaning, fixing or replacing equipment
• Issuing notices to consumers
• Transporting, storing, destroying or disposing of affected products
• Replacing ingredients, materials or products
• Retailer per store fees
• Overtime for employees
• Crisis communications & PR
• Ongoing loss of sales or customers
• Cancelled contracts
• Replacing suppliers or hiring contract manufacturers
• Prolonged interruption of production
• Stalled R&D, M&A or other investments
• Impact of brand & reputational damage
Product recall insurance helps safeguard a business from the financial impact of a recall, specifically the first and third-party costs associated with identifying and addressing the issue, conducting the recall and keeping the business operational.
