PRODUCT  RECALL INSURANCE

What is Product Recall  Insurance?

Product Recall

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.

What is covered?

The insurance  is to cover costs such as:

  • Customer Notification– Informing each customer that has bought that product not to use the product and inform the company to be recalled.
  • Shipping Costs: Transportation to get all the products back to the main manufacture.
  • Warehouse and Storage expenses: the company may need to hire more storage to store the recalled products.
  • Disposal Costs: to safely dispose of the product without causing any more harm when disposing of it.
  • Over Time Work: where the company has to pay their employees overtime to solve the problem.
  • Brand Repair: cost to help the business re-grow from the recall incident

What should you know?

A product recall can have long-lasting and costly consequences for your business, affecting reputation, productivity and employee morale. It is essential to avoid product recall by

  • Understanding product safety standards and regulations within your industry.
  • Assessing manufacturing process and safety.
  • Performing regular quality checks
  • Being prepared for the worst, having a plan and insurance to execute the plan if things go wrong.

DONT WAIT! ASK OUR INSURANCE SPECIALISTS.

Get A Quotation

LATEST PUBLICATIONS

Product Liability Insurance – The Best Insurance For Your Product

Tags: , , , |

Product liability insurance is known as the must-have insurance for any product in any industry. New products are entering the market daily. Many products succeed and make an impact; the public forgets some that fail. We all depend on various products, from the food we eat to the phone we use. Each product is manufactured for a particular target market and has a specific purpose. Products have their intended use and fall under various industries. Many people believe releasing a product generally involves a business selling a customer buying, but this is not the case. When it comes to selling [...]