01 — IDENTIFY
Understand your recall exposure
Consider how a product defect, contamination issue or other problem could affect your customers, supply chain and business operations.
Product Recall Insurance can help businesses manage the financial impact and additional costs that can arise when a product needs to be withdrawn or recalled from the market.
Product Recall Insurance is specialist commercial insurance designed for businesses that manufacture, supply, distribute or sell products where a recall or withdrawal could create significant costs.
If a product is found or suspected to have a defect, contamination or other issue that means it needs to be withdrawn from the market, businesses can face costs that go beyond the value of the affected products themselves.
Depending on the policy, Product Recall Insurance can provide cover for specified recall-related costs and financial losses, subject to the policy terms, conditions, exclusions and limits.
Consider how a product defect, contamination issue or other problem could affect your customers, supply chain and business operations.
Product recalls can create significant costs. Specialist insurance can be considered as part of a wider risk management strategy.
Having an appropriate insurance arrangement in place before an incident occurs can help your business respond when a covered recall happens.
A Product Recall policy can be structured around the particular risks faced by your business. Depending on the insurer and policy wording, cover can respond to a range of costs associated with a covered product recall or withdrawal.
Depending on the policy, cover may respond to specified expenses incurred in carrying out a covered product recall or withdrawal.
Policies can provide cover for certain costs associated with removing affected products from the supply chain or market.
Depending on the wording, certain costs relating to the disposal, replacement or handling of affected products may be considered.
Some specialist policies can include access to crisis management or recall response support following a covered incident.
Where specifically insured, a recall can create wider financial consequences for the business. The available protection depends on the policy structure.
Product recalls can affect customer confidence and relationships. Specialist recall programmes can include risk management and response considerations alongside the insurance cover.
Product Recall Insurance can be relevant to a wide range of businesses involved in manufacturing, importing, distributing or selling products.The level of exposure will depend on the nature of the products, supply chain and responsibilities of the business.
Businesses manufacturing products can face significant exposure if a defect, contamination issue or other problem requires products to be recalled.
Manufacturing Insurance→Food manufacturers, producers, processors and suppliers can face serious consequences from contamination or other product safety issues.
Food Business Insurance→Importers can have exposure where they bring products into the UK market and may have responsibilities within the supply chain.
Business Insurance→Businesses supplying products to retailers or other organisations can face recall exposure across their distribution network.
Wholesale Insurance→Businesses selling products under their own brand can have particular responsibilities and exposure when something goes wrong.
Product Liability Insurance→Retailers and e-commerce businesses may face financial and operational consequences when products supplied to customers need to be withdrawn.
Retail Business Insurance→Product recall exposure isn't determined by industry alone. We can look at what your business manufactures, imports, distributes or sells and help you understand whether specialist Product Recall Insurance should form part of your commercial insurance programme.
Businesses involved with products can already have product liability insurance as part of their commercial insurance programme. However, product liability and product recall address different aspects of product-related risk.
Product Liability Insurance is generally concerned with claims arising from injury to people or damage to property caused by products supplied by the insured business.
Product Recall Insurance can be designed to address specified costs and financial consequences associated with a covered product recall or withdrawal.
Product Liability Insurance and Product Recall Insurance can address different areas of product risk. The appropriate combination will depend on your business, products, responsibilities and insurance requirements.
If a potential product problem arises, having appropriate procedures and insurance in place can help your business respond in a structured way. The precise claims process will depend on the policy and insurer involved.
A potential product defect, contamination issue or other concern is identified and investigated.
The business considers the nature of the issue, affected products, customers and potential market impact.
Where a recall or withdrawal is required, the business follows its procedures and communicates with the relevant parties.
Where the incident is covered, the insurer can assess the claim in accordance with the policy terms, conditions and limits.
Insurance is only one part of managing product recall risk. Businesses should also consider product testing, quality control, traceability, supplier management, customer communication and an appropriate recall response plan.
Product Recall Insurance is a specialist area of commercial insurance. At Dixons Commercial Insurance Brokers, we can look at your business, understand how products move through your supply chain and discuss the insurance options available for your particular circumstances.
Discuss Your Product Recall Risk→We consider the products you supply, your customers, territories and responsibilities within the supply chain.
Product recall exposure can involve more than the product itself. We look at the wider commercial risk.
We can discuss the types of specialist Product Recall Insurance available for your business.
We can consider Product Recall alongside your wider commercial insurance programme, including Product Liability.
Here are some of the common questions businesses ask about Product Recall Insurance and how it can form part of a wider commercial insurance programme.
Product Recall Insurance is specialist commercial insurance designed to provide protection against specified costs and financial consequences associated with a covered product recall or withdrawal. The precise cover depends on the policy wording, limits, conditions and exclusions.
Depending on the policy, Product Recall Insurance can cover specified recall and withdrawal expenses and may provide protection for other financial consequences of a covered incident. Potential areas can include recall expenses, product withdrawal, disposal or replacement costs, crisis management and certain business interruption losses.
Product Liability Insurance and Product Recall Insurance address different areas of risk. Product Liability is generally concerned with legal liability arising from injury or property damage caused by products, whereas Product Recall Insurance can address specified costs associated with a covered recall or withdrawal.
Product Recall Insurance can be relevant to manufacturers, food and drink businesses, importers, wholesalers, distributors, retailers, online sellers and businesses supplying products under their own brand. The level of exposure depends on the individual business and its supply chain.
Manufacturers can have significant product recall exposure because they may be responsible for products throughout the manufacturing and supply process. Whether specialist recall insurance is appropriate depends on the products, markets, customers and risk profile of the individual business.
Food manufacturers, producers, processors and suppliers can face significant exposure if contamination, labelling or other product safety issues require products to be withdrawn or recalled. Specialist Product Recall Insurance can be considered alongside other food business insurance.
There is no standard price for Product Recall Insurance. Premiums can depend on factors such as the products involved, turnover, territories, distribution, claims history, limits required and the overall risk presented to insurers. A quotation requires an assessment of the individual business.
Businesses should follow their internal recall procedures and the requirements of their insurance policy. This may involve identifying affected products, assessing the risk, notifying relevant parties and managing the withdrawal or recall. If the incident may give rise to an insurance claim, the insurer should be notified in accordance with the policy requirements.
Some Product Recall policies can provide protection for specified financial losses arising from a covered recall, which may include certain business interruption consequences. This is not automatic and depends on the policy wording and cover selected.
Yes. Dixons Commercial Insurance Brokers can discuss your business, products, supply chain and existing insurance arrangements and help you understand the Product Recall Insurance options available for your requirements.
Tell us a little about your business and your product recall requirements. A member of the Dixons team can then discuss your circumstances and the insurance options available to you.
Product Recall Insurance needs to reflect the products you supply and the way your business operates. Give us some basic information and we'll take it from there.
Complete the form below and we'll be in touch to discuss your requirements.