A Product Recall is an act of removing a batch or production run of products from the marketplace.
Product recall insurance covers expenses associated with recalling a product. Product recall insurance is typically purchased by manufacturers such as food, beverage, toy, and electronics companies.
Product recall insurance reimburses policyholders for financial losses sustained when a product is recalled. Product recalls can be involuntary (required by a regulatory agency or the government) or voluntary (the manufacturer notices a defect that is unlikely to force an involuntary recall), and can be costly.