Product Recall Insurance lastic bottles with blue line on factory assembly line

Product Recall

Commercial Insurance

Insurance Solutions for Product Recall, Product Contamination & Product Risk Mitigation

Product recall insurance is an essential form of protection for any business that manufactures or distributes products. It covers all of the costs associated with notifying customers, warehousing, and disposal of the recalled product.

The expense of recalling a product in most industries is devastating, as margins grow thinner as the competition goes up. As a result of improved product tracing methods, product recalls have been on the rise, so it is critical to get the right product recall insurance. Knowing that your insurance limit covers the costs of getting expertise, you can quickly resolve a consumer problem before it erodes public trust.

Protecting your reputation

If you do not have a process for handling product recalls, your brand perception can suffer. A recall is not just a matter of safety; it is also a matter of retaining trust. Customers are less likely to buy products from brands that they feel put their profits over their customers’ welfare.

Corporate reputation is one of the most valuable assets that a business can develop. When it comes to consumer protection, reputation is all that matters. The way your business handles a product recall can affect your bottom line in the long run, so keeping your consumers safe should be your number one concern.

The HWI team can help you create a tailored product that will enable you to keep communication lines open in the event of a product recall.  Knowing that you are covered lets you engage media partners and answer questions posed by consumers, media, government agencies, and business partners to keep your reputation intact.

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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

Global network

Global Reach

We have a global reach and have a strong understanding of the insurance markets in the US and UK, which means we can put our knowledge to work for you.

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Decades of experience

Our team members have extensive experience in crisis management and can help coordinate an internal network to mitigate the loss of profits.

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Tailored product

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.


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