Who Should Get Product Recall Insurance?
Product recall coverage is a critical safeguard for any entity involved in the lifecycle of a product. This comprehensive cover is essential for manufacturers across all industries, from food and beverage to electronics and automotive, making it key insurance for manufacturing.
It's also vital for retailers and wholesalers who sell or distribute products, as well as importers bringing foreign-made goods into the Australian market. Brand owners, even if they outsource manufacturing, and directors and managers responsible for a company's risk exposure should also consider this vital protection.
What Does Product Recall Insurance Cover?
Product Recall Insurance is specifically designed to protect your business from the significant financial burdens and operational disruptions that follow a product recall event.
Here's an outline of key coverages:
Public & Product Liability
Covers your legal liability for personal injury or property damage caused by a defective product you've sold or supplied. This addresses compensation claims from individuals affected before the recall is made.
Brand Rehabilitation Costs
Funds public relations and marketing efforts crucial for restoring your company's reputation after a damaging recall. This coverage helps cover the significant costs associated with repairing brand image and consumer trust.
Product Recall
Addresses the direct costs incurred during a recall. This typically includes expenses for notifying customers, retrieving the product, additional labour, storage, disposal, and replacing the recalled goods. It also extends to pre-recall expenses like investigation costs, and third-party recall expenses that your business becomes liable for within the supply chain.
Product Guarantee Insurance
Covers costs associated with fulfilling a product guarantee or warranty when a product fails due to a defect, often complementing recall scenarios.
Crisis Management Expenses
Covers the costs for engaging specialist consultants to manage communication and strategy during a recall event. These experts provide crucial guidance to mitigate negative press and ensure effective response protocols.
Malicious Product Tampering
Provides financial protection against losses resulting from actual or threatened malicious alteration or contamination of your products. This critical cover addresses specific, intentional threats that could lead to a recall down the line.
Speak with Our Product Recall Insurance Risk Specialists!
Get in touch with one of our experienced brokers for a personalised insurance package using the form here: