Product Recall Liability Insurance
PRODUCT RECALL or PRODUCT WITHDRAWAL EXPENSE COVERAGE fills the gap caused by the General Liability product recall exclusion. This insurance covers the expenses incurred by a business when it conducts mandated and/or voluntary product recalls.
Losses from product liability suits and claims can be costly and time consuming. In addition, they can do great harm to the business’s reputation and ability to attract and retain clients. One way to reduce the likelihood of a product liability claim, or at least reduce the size of the loss if there is one, is by a product recall.
The Commercial General Liability Coverage Form excludes damages from the recall of the insured’s product or work because of a defect or dangerous condition. Product Recall Coverage helps fill this gap by providing coverage to reimburse a business for expenses following a product recall. Product Recall coverage is afforded whether initiated proactively by the insured or by a governmental agency, such as the Food and Drug Administration (FDA), Environmental Protection Agency (EPA), or the Consumer Product Safety Commission, or state governmental agencies such as departments of agriculture and departments of environmental protection.