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Product Recall

An average 4,712 products are recalled by federal agencies each year

No matter how much money companies invest in research and development, operational oversight and product testing, mistakes can happen and unsafe products can be released to the public. Businesses often have to issue costly product recalls to ensure public safety and brand preservation. Obtaining Product Recall Coverage is an important first step in ensuring that the expenses associated with a product recall don’t end up destroying them causing critical harm to the business.

Burns & Wilcox can provide access to specialty insurance tailored to your clients’ commercial needs. Our experts can provide a policy that will make it easier for your client to do the right thing when product recall is required.

Coverage Details and Features

  • Primary and follow form excess product recall
  • Limits from $100,000 to $25M
  • SIRs from $2,500 to $500,000+
  • No minimum premium
  • Non-admitted paper
  • First and third party recall costs
  • Replacement costs
  • Consultant costs
  • Public relations costs
  • Loss of profit
  • Increased cost of working
  • Pre-incident consulting
  • Crisis consulting
  • Rehabilitation
  • Extortion
  • Coverage for voluntary and involuntary recall
  • Consumer good optional coverage
    • PLUS endorsement – loss of gross profit, extra expense, rehabilitation expense
    • Consequential loss (third party)
  • Component parts optional coverage
    • Impaired property
    • Consequential loss (third party)
  • Consumable products coverage
    • Loss of gross profit
    • Extra expense
    • Rehabilitation costs
    • Extortion costs
    • Optional: consequential loss (third party)

Target Classes

(including but not limited to)

  • Appliances
  • Clothing
  • Furniture
  • Games/Toys
  • Glassware
  • Hardware
  • Paper goods
  • Sporting goods
  • Tools/Machinery
  • Auto/Aircraft critical and non-critical parts
  • Electric and electronic parts
  • Machinery parts
  • Medical/Surgical parts
  • Metal parts
  • Plastic parts
  • Bakeries
  • Beverage companies
  • Meat/Poultry/Seafood
  • Fruits/Vegetables
  • Cosmetics
  • Pharma/Rx
  • Food/Drink manufacturers
  • Restaurants
  • Consumer goods
  • Supermarkets


Burns and Wilcox Videos

Every Risk Has Its Price: Product Liability and Recall Coverage

For product liability and recall exposures, that price is over $500 billion in deaths, injuries, property damage, and costs related to recalls every year...

1min 52sec

Ask an Expert

What is making product recalls such a hot topic these days?
Increased regulations and public awareness, especially over social media channels, make protecting products more important than ever. Data from the Consumer Product Safety Commission shows a 108% increase in recalls in the past decade, which equals more than 3,300 recalled consumer products.
What type of risk does product recall coverage protect against?
There are a variety of reasons for a product recall, including product defects/production errors, design defects, improper storing and transporting of goods, as well as accidental or malicious contamination. It is a broad coverage that provides financial protection in the event a product has to be pulled off the retail shelf or assembly line. Common product recall policies offer first party coverage for loss of profit, rehabilitation expenses and replacement costs. Third party coverage may include the customer’s loss of profit and rehabilitation expense. There are also additional coverage enhancements available that offer protection in case of a government recall or adverse publicity that affects the client’s reputation. The direct financial loss from a recall is often minimal in comparison to the reputational damage.
What are the common misconceptions related to product recall coverage?
Often, businesses do not think about how their product fits into the overall supply chain. For example, some manufacturers only consider their risk relative to the number of parts they sell or number of customers with whom they have relationships. But when a product is recalled, often there is one piece of the overall manufacturing process to blame. A retail broker or agent can help their client understand their risk by exploring the overall supply chain and how all levels down to the consumer could be impacted should their product fail. The risk and impact to their business is often much more than they expected.

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