Product Recall Insurance
If you ever feel so inclined to read your Public Liability insurance policy you will see that the costs associated with Product Recall insurance are excluded. That’s why it is always best to get advice from an expert insurance broker such as Prizm Solutions, based in Tamworth. Since 2006 we have been helping small and medium sized businesses get the right insurance to make sure that they are properly covered by advising them what is and what is not covered.
The reason Product Recall insurance is not covered in your Public Liability insurance is because this is a specialist type of insurance which needs bespoke underwriting by insurers familiar with the risks and exposures involved. And, as every business is different so will the Product Recall insurance you need. If you call our Tamworth office we will take time to understand what you do and how you do it so you only purchase the insurance cover that you need. We don’t believe in a one size fits all.
In essence, Product Recall insurance is there to provide reimbursement for the recall costs and/or financial losses incurred because a product you have supplied has caused (or could cause) injury or damage.
A normal Public Liability insurance or Products Liability insurance policy covers the costs of any injury and/or damage but if a product has caused a problem then the prudent measure is to recall every single similar item to prevent further incidents. Which is great, except for one minor problem, who pays?
Usually a Public Liability insurance or Products Liability insurance policy almost always won’t pay for the recall costs which leaves the business to fund it itself. Unless of course you have got Product Recall insurance cover in force.
In the past this type of insurance has typically been aimed at the Food and Beverage industries but increasingly other types of business such as those involved in nutraceuticals, automotive components, consumer products and non-invasive medical devices are having to consider this type of protection. The best advice is to have a chat with one of our team of insurance experts and we can advise you about Product Recall insurance, whether you need it and if you do we will recommend the best policy for you and tell you how much it will cost.
Cover can be extended to include Malicious Tampering & Extortion which is there to combat risks such as those experienced by baby food manufacturers in 1989 when slivers of glass, razor blades, pins and caustic soda were found in the products of two of the largest baby food manufacturers, H.J. Heinz, and Cow & Gate. The scare began with a blackmailer trying to extort $1.7 million from Heinz, and this escalated as copycats capitalized on the initial report. Simply horrifying.
Product Recall insurance can cover product recall costs and rectification costs and lost profits can also be included. Some specialist underwriters can also provide cover for recall events arising from safety critical errors made during the production, programming or coding of software elements of an insured product.
As premiums for this type of cover can be expensive, what makes us different from most brokers offering Product Recall insurance is that in most cases we don’t take a commission from the insurance companies for placing business with them. Instead, we would rather work on a fee basis so that you can see our earnings, which we feel is more ethical, is more transparent and helps to keep the costs as low as possible.
We operate extensively across Tamworth, Lichfield and Sutton Coldfield, but we also have lots of clients much further afield. So, whether you are the owner of a smaller business or a Director of a larger business we assure you that we have a wealth of knowledge of many different types of business sector and will always give you honest, ethical advice. We are an award winning insurance broker, with a fantastic team of enthusiastic insurance specialists and we would love to help you.
Would you like a quote or to find out more?
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