Protect your business against the financial, regulatory and reputational impact of recalling defective or non-compliant products.
Product Recall Insurance protects businesses against the costs and liabilities associated with recalling products that are defective, unsafe or non-compliant. Unlike product liability insurance, which responds to injury or property damage claims, product recall insurance focuses on the operational and financial costs of removing products from the market.
This includes recall logistics, customer notification, regulatory liaison, legal advice and optional business interruption following a recall event. Cover can apply to contamination, mislabelling, manufacturing defects or failures to meet regulatory standards.
This insurance is commonly arranged by:
Covers expenses to remove, repair or replace defective products, including freight, storage and disposal.
Covers costs to notify customers, suppliers and authorities, including public announcements and recall notices.
Covers legal advice, regulatory liaison and specialist consultancy costs during a recall.
Covers recalls arising from contamination, mislabelling or manufacturing defects.
Covers loss of income due to halted production, delayed shipments or operational downtime.
Arranged annually to cover defined product lines or operations, with limits applying per event and in the aggregate. Responds to recall-related costs, including notification, transport, disposal, and crisis management.
Extends cover to include loss of income and increased costs of working following a recall-driven shutdown. Indemnity periods and limits are structured around production scale, distribution footprint, and recovery timeframes.
Policy structure depends on product type, distribution scale, regulatory requirements, supplier reliance and traceability systems.
Product defects can trigger mandatory recalls
Recall costs can escalate rapidly
Regulatory scrutiny and compliance obligations are increasing
Reputational damage can impact long-term sales
Product liability insurance does not cover recall costs
Speak with a broker who understands product risk and compliance.
Get My Product Recall Insurance QuoteImportant: Product Recall Insurance coverage, limits, exclusions and definitions vary significantly between insurers. Intentional acts, pre-existing non-compliance and general liability claims are typically excluded. Advice from an insurance broker is recommended to ensure the policy aligns with product type, distribution risk and regulatory obligations.