Product Recall

This covers the expense incurred by the insured party in notifying the public and recalling products when they present a hazard to people and/or property, or are faulty.

Recall costs may include:

• Public notification
• Finding and tracking products
• Emergency, isolation, extraction and transportation measures in order to isolate the incriminated product
• Storage costs
• Additional costs for labour and equipment hire
• Product destruction costs

Product recall expense insurance is essential when the products sold, manufactured or delivered are intended for mass consumption. If a consumer product on the market is found to present or suspected of presenting a risk to the health or safety of consumers, the product must be removed from sale. This recall may be voluntary or ordered by a relevant authority.