What does product recall insurance cover?
Product recall insurance covers the expenses that result from a product recall, such as the cost for recalling and disposing of products, but it doesn’t cover any losses from third parties.
Coverage applies to expenses made on behalf of your company, however additional coverage can be purchased to cover third-party costs.
If you’re facing a recall, there are some expenses that you may not be able to avoid. Product recall insurance can cover direct expenses such as:
- Notification to customers
- Shipping costs
- Warehouse and storage expenses
- Lost sales
- Costs of extra personnel needed to carry out the recall
- Other necessary costs for a successful product recall
Coverage is available for several scenarios, including faulty or contaminated products as well as product tampering. This coverage is set in motion if a product poses severe health risks/death to users.
Benefits of insuring with HWI
We have a global reach and have a strong understanding of the insurance markets in Canada and the UK, which means we can put our knowledge to work for you.
Our team members have extensive experience in crisis management and can help coordinate an internal network to mitigate the loss of profits.
We will create a tailored product to help in the communication with media partners to answer questions posed by consumers, media government agencies, and business partners.