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Product Recall Insurance - Recall Response Insurance

Product Recall Insurance

Product recall insurance, also know as product recall response, is becoming an increasingly important form of insurance coverage in the emerging marketplace. While most larger companies have product recall insurance coverage in place, many smaller ones that need it or should have it do not. Over the last several years the need for product recall insurance has increased exponentially as every year more and more products come to the market, global product regulatory standards have increased and continued to become more stringent and new consumer product safety rules are being implemented.

What is Product Recall Insurance?

Product Recall Insurance Coverage can provide coverage to policy holders in the event of both voluntary product recalls or government imposed recalls. It is important to note that as a product manufacturer there is always a chance they you may need to recall a product or may be mandated to recall a product because mistakes and errors are bound to occur regardless how small or big your company may be. In 2016 over 15 major auto makers were hit with an airbag product recall affecting 22 million vehicles. In 2012 the FDA recalled almost 9,500 products. In the first 2 weeks of March 2014 there were 34 recalls issued, more than 2 per day for that period of time.

What does Product Recall Insurance cover?

Product Recall Insurance is designed to protect your business in the event of a product recall. It can offer crisis counseling, pre-event planning, recall consulting, recall notifications, it can aid in product retrieval, processing and destruction. Product recall can provide provide coverage to pay for consumer notification costs, the cost to replace, repair, recondition, and or decontaminate recalled goods. It can provide coverage in the event of a governmental recall by a federal, state or local governmental body or a voluntary recall engineered to prevent bodily injury or property damage upon discovery of a flaw or hazard.

Who Should Have Product Recall Insurance?

Anyone that is responsible for the design, manufacture, sale or distribution of a component or end user product. This applies to any business or individual that manufactures his own product or even if the product's manufacturing is subcontracted out buy another operation, even if the operation is overseas.

How is a Product Recall Insurance Policy Rated?

A Product Recall Insurance Policy is rated on several factors.

  • What is the product you are covering

  • How many of these products will be distributed into the market

  • What are they used for and who will be using them

  • How long are they intended to last or what is the life of the product

  • What are the products made of

What Does Product Recall Insurance Cost?

Product recall insurance costs are much like any other insurance product. There no real normal or average rate because they are based on the specific type of product you manufacture, retail or market as well as how much of the product you are putting into the market. There are some products that pose very little potential recall threat are others that have a higher propensity to be recall risky, and therefore carry higher premiums.

What types of products need Product Recall Insurance?

Essentially any product that is put into market or sold in any venue should have products liability insurance.  Some examples are food, baby strollers, pack and plays, car seats, high chairs, automotive components, clothing, tools, energy products, furniture, stationary goods, beverages, baked products, drugs & pharmaceuticals luggage, pet items, heating & cooling apparatus, electronic goods, vehicles, toys (especially).

What do I need to purchase a Product Recall Insurance Policy?

Simple, It happens more than you think just check the websites of the CPSC, FDA, and NHTSA; Governmental oversight is stronger, The costs are prohibitive and on average a product recall costs in excess of $500,000 in 2010 a product recall of infected eggs cost the egg industry over $100 million in a single month; The mistaken belief it won’t happen to our company; and Product Recall Insurance is the first line of defense for companies that find themselves facing a product that needs to be withdrawn from the market.

 

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Because every product is different, underwriting a product recall insurance policy is complicated. If you need a quote on Products Liability Insurance Coverage, please complete a product recall quote request .  As many people have already found out, Castle Rock Insurance Agency is the best stop for a quote on their Products Recall Insurance.  We are the low cost solution for your Product Recall Insurance Policy. Castle Rock Agency currently offers Product Recall Insurance Policy Coverage in California, CA, Connecticut, CT, Florida, FL, Illinois, IL, Maryland, MD, New York, NY, New Jersey, NJ, Pennsylvania, PA, Texas, TX, West Virginia, WV, Virginia, VA.

 

Product Recall Insurance Coverage
Product Withdrawal Insurance