Product Recall Expense Coverage
Often excluded from coverage, product recall expense can take a big bite out of your profits. If you qualify, our product recall expense form provides coverage for certain expenses of recalling products that have caused or may cause bodily injury or property damage.
- The product recalled must have a known or suspected defect, deficiency, inadequacy or dangerous condition in it.
- The recall can be initiated by the insured or any governmental body.
- Defective packaging or labeling is not covered.
Covered expenses include:
- Communications, including radio or TV announcements, printed ads including stationery, envelopes and postage, and newspaper ads.
- Cost of hire of additional employees or paying overtime to existing staff who are assigned to work on the recall.
- Shipping the recalled product to designated locations.
- Additional warehouse or storage space rental.
- Cost to dispose of recalled product that cannot be reused.
|