About This Policy
Product Recall Insurance protects manufacturers from the high costs of recalling unsafe or defective products. It ensures financial and reputational recovery after a product crisis.
What's Covered
The policy reimburses expenses directly related to the recall process—such as communication to customers, transportation, disposal of defective goods, repair/replacement costs, warehousing, and testing. It can also include coverage for third-party injury or damage, legal defence costs, regulatory fines, and loss of sales revenue (business interruption). Some policies also offer brand restoration and public relations consultancy to minimize long-term damage to reputation.
Key Features
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Key Features
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Covers recall costs: logistics, disposal, replacement, PR, Includes third-party liability arising from recalled product, Can extend to business interruption and brand rehabilitation, Applicable to food, pharma, automotive, electronics, toys, etc., Often purchased in combination with Product Liability Insurance
Who Should Buy?
Food & beverage manufacturers (especially perishable/packaged goods), Pharma and medical device companies, Automotive component and electronics manufacturers, Consumer goods, toy, or personal care brands, Exporters whose products are subject to international compliance (FDA, EU standards)