Product recall insurance provides cover for expenses associated with recalling a product from the market. It is important that business act quickly and efficiently when a recall is required. Events are often complex and can be costly, requiring expert advice and management to mitigate and prevent claims from happening in the first place thus protecting the companies balance sheet.
A product recall policy will and may include coverage for:
- Recall expenses (e.g. disposal and replacement)
- Pre-recall expenses
- Third Party recall expenses
- Business interruption
- Loss of gross profits/revenue
- Government recalls
- Accidental Contamination
- Product Rehabilitation
- Increased costs of working following a recall
- Crisis Management / Consultancy costs
At Prospect we have access to key markets that offer cover to a diverse range of industries including:
- Food and Beverage (human consumption)
- Medical Devices
- Domestic Pet Food.
Reputational Damage: Every business trades on its reputation and adverse media can be extremely damaging, putting a huge strain on profitability. We have access to key markets able to provide cover that deals with the effect of an adverse media event in terms of lost profit and also assists with the public relations work that aims to minimise ongoing negative effects on a company.
A typical reputational harm policy can respond to issues such as:
- Employee negligence
- Celebrity endorser disgrace
- Supplier disgrace
- Product quality issues
- Counterfeit issues
Each policy can be tailor-made to a company’s specific exposure to adverse media and cover lost profit as well as associated costs and expenses.