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Product Recall Insurance

From medication to macaroni and cheese and computer batteries to airbags in cars, massive product recalls have become a way of life. This is in part due to an increase in regulatory standards and constantly improving product safety rules, but regardless of the reason, manufacturers and sellers brace themselves for the day when they must initiate a recall. When that day arrives, the professionals at iSure Insurance Brokers can prepare you to mitigate the consequences with a product recall policy.

Policy offers unique coverage

In the event you have a product that is deemed likely to be recalled, your product recall insurance policy reimburses you for the financial losses you sustain. Even if the product is ultimately cleared of any liability-inducing problem, you would still be reimbursed for certain expenses related to the event.

What’s more, product recall insurance picks up where the standard general liability policy leaves off. The latter excludes coverage for damages resulting from the withdrawal, replacement, or loss of use of the policyholder’s product or work — in other words, a product recall exclusion.

Some type of product recall happens almost daily

The exponential growth in product recalls may indicate that this coverage has moved from “nice to have” to the “must have” category for smaller businesses that (unlike large companies) tend not to purchase this policy. They don’t realize that a single recall event could render them bankrupt. With decades of experience in this niche, your iSure professional advisor can offer you historical data, industry projections, and insightful advice about how to protect yourself in the face of this very expensive risk.