Product Recall Insurance
While some assume product recall and product liability insurance are interchangeable, they provide very different protections.
Product recall insurance covers costs associated with retrieving your products if your company or the government issues a recall due to suspected dangers. Product liability insurance, on the other hand, protects your business from lawsuits associated with your goods harming customers or causing property damage.
While both types of coverage involve protections for manufacturers and producers, they each serve a unique purpose. If you don’t already have recall insurance in place, be sure to reach out to your trusted insurance advisor as it may be a crucial part of your coverage.
Who Needs It
Not all businesses need product recall insurance. Manufacturers, retailers, wholesalers, and food producers are the primary industries that would benefit from this type of policy.
For example, we often hear about automakers having mass recalls on their vehicles. Their recall insurance would take the brunt of the cost of repairs or replacements to remedy the issue.
Why You Should Have It
Product recall scenarios can quickly become costly. Having an insurance policy in place will help cover expenses associated with public announcements, removing products from shelves, disposal, distributing a replacement, and any additional staff needs.
With increasing industry regulations and guidelines, recalls are becoming even more common. If you have additional questions or are interested in getting a policy quote, please contact Steve Longenecker (303-808-9351 x2) at Mountain Insurance: Longmont.
We give out $25 gift cards for referrals that become our insurance clients.
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