Product Recall 2017-03-28T12:16:59+00:00


What is Product Recall insurance?
Product Recall insurance is a form of insurance that can be called upon should one of your products be recalled from the market.

Who needs Product Recall insurance?
If you are a manufacturer, processor or distributor of goods, you should have Product Recall insurance. Whether it be products like pharmaceuticals, cosmetics, food, beverages or electrical equipment, the costs incurred in the event of a recall are extremely expensive, and can be highly damaging to even the largest companies.

What does Product Recall insurance cover?
Product Recall insurance generally covers the following events:

  • Accidental contamination or defect of your product
  • Malicious tampering of your product
  • Product extortion (threat to maliciously tamper with your product)
  • Government recall of your product

In the event of one or more of these events occurring, Product Recall insurance would generally cover the following expenses, up to the specified limit of your policy:

  • Recall Costs (first & third party)
    The additional expenses associated with actually recalling your product from the market, which may include direct customer returns, additional transportation, storage, testing, and the eventual disposal, of your product.
  • Rehabilitation Expenses
    The costs associated with rehabilitating your brand and the recalled product, which may include the use of public relation agencies, additional marketing and promotional activities.
  • Defence Costs
    Any costs incurred by a third party (i.e. your customer) to recall / withdraw your product from sale / use.

This is by no means an exhaustive list and the level of cover available can be tailored to meet your specific business and/or product requirements.

How much Product Recall insurance is enough?
This will depend on the nature of your product, the turnover generated from the sale of your product and the estimated costs involved in the event of a product recall. With this mind, Product Recall insurance limits can range from $500,000 to $100 million.

For more information on Product Recall insurance, and some real life product recall examples, please refer to the article written by our Product Recall insurance expert, Chris Guy, here.


We have access market leading insurance companies and underwriting agencies from around the world to provide our clients with the greatest level of Product Recall insurance possible.