Contaminated or defective product recall insurance
Product Recall Insurance protects companies from the costs and consequences arising from the market withdrawal of defective or contaminated products that may pose a risk to health, consumer safety, or regulatory compliance.
Main Coverages:
- Recall and destruction expenses: Costs related to the retrieval, transport, and disposal of affected products.
- Notification and communication: Expenses for advertisements, notices, and crisis communication with customers, suppliers, and consumers.
- Storage and redistribution expenses: Costs for temporary storage and restocking of substitute products.
- Financial losses: Coverage for lost revenue due to business interruption.
- Public relations costs: Advisory services and reputation management to minimize brand impact.
- Legal expenses and liability: Legal defense and potential compensation for third-party claims.
This insurance is essential for industries such as food, pharmaceutical, automotive, technology, toys, and cosmetics—where a product recall can lead to significant losses and damage to customer trust.
