Policy snapshot
Product Recall Insurance covers the costs incurred by a company when it must recall a defective or dangerous product from the market due to the risk it poses to consumers, regulatory action, or reputational harm.
What is Product Recall Insurance?
Product Recall Insurance protects manufacturers from the high costs of recalling unsafe or defective products. It ensures financial and reputational recovery after a product crisis.
What can it cover?
- The policy reimburses expenses directly related to the recall process—such as communication to customers, transportation, disposal of defective goods, repair/replacement costs, warehousing, and testing. It can also include coverage for third-party injury or damage, legal defence costs, regulatory fines, and loss of sales revenue (business interruption). Some policies also offer brand restoration and public relations consultancy to minimize long-term damage to reputation.
Who should consider it?
- Food & beverage manufacturers (especially perishable/packaged goods), Pharma and medical device companies, Automotive component and electronics manufacturers, Consumer goods, toy, or personal care brands, Exporters whose products are subject to international compliance (FDA, EU standards)
Key features to understand
- {"heading": "Key Features", "bullets": ["Covers recall costs: logistics, disposal, replacement, PR", "Includes third-party liability arising from recalled product", "Can extend to business interruption and brand rehabilitation", "Applicable to food, pharma, automotive, electronics, toys, etc.", "Often purchased in combination with Product Liability Insurance"]}
What deserves attention before you buy?
Coverage, exclusions, sub-limits, deductibles, waiting periods, warranties and underwriting can vary between insurers and policy versions. The policy wording and schedule remain the definitive contract. Novo can help you review the relevant terms for your requirement.
Read the wording, not just the brochure
The schedule and policy wording determine the actual contract.
Compare meaningful differences
Look at exclusions, limits, deductibles, conditions and claim requirements—not premium alone.
Think beyond purchase
Servicing and claims-related support can matter as much as placement.