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Product Recall Liability

If you are a manufacturer, processor or distributor of goods you should have Product Recall Liability insurance. A Product Recall Liability policy protects your business from the significant financial and reputational costs associated with a product recall.

With over 21 product recalls in Australia over the last two months alone, the importance of Product Recall insurance is ever growing.

Whether it be products like food, beverages, cosmetics, electrical equipment, pharmaceuticals, or household appliances the product recall process is extremely expensive, and can be highly damaging to even the largest companies.

A Product Recall Liability policy is there to cover you for the costs associated with a product recall:

  • Cover for the cost of withdrawing products off shelves
  • Cover for the cost of replacing the recalled product on shelves with ones that are deemed safe
  • Cover for expert advice and assistance on managing your brand reputation in the public domain. Product recalls are increasingly receiving widespread media publicity.

Product Recall Liability will look to significantly reduce the impact a product recall can have on your organisation, empowering you to make decisions for the future of your business with greater confidence.

Please Note: Below are some of the more common insurance policy features, however, the list is not exhaustive and some features may not be offered by certain insurers. Please refer to the insurer-specific policy wording for inclusions, exclusions, terms and conditions. 

Covered Features

  • Product Recall Liability Recall costs (first party)

    Recall costs (first party)

    The costs incurred by you to recall/withdraw a product.

  • Product Recall Liability Recall costs (3rd party)

    Recall costs (3rd party)

    The costs incurred by a 3rd party to recall/withdraw your product.

  • Product Recall Liability Accidental contamination

    Accidental contamination

    Cover provided for inadvertent or unintentional contamination or mislabelling of products.

  • Product Recall Liability Business Interruption

    Business Interruption

    Loss of gross earnings or additional expenses incurred as the result of a recall event.

  • Product Recall Liability Reworking Costs

    Reworking Costs

    The costs to restore or replace lost product.

  • Product Recall Liability Product Extortion

    Product Extortion

    The threat of or malicious product tampering of products with a demand for monies.

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