Product Recall Insurance Quotes with LMBF
Product recalls happen every day, and when they do they can be costly. No matter the type of product you manufacture and/or distribute, whether that’s a component part or a food item, product recall insurance is critical to defend your enterprise from financial losses that may arise due to the voluntary or involuntary recall of a product you sell. The costs that may come with a product recall may involve disposal, restock, warehouse expenses, and shipping fees. Coverage typically triggers when there is knowledge that an insured product had the potential to cause bodily injury or property damage. LMBF helps your enterprise find the product recall insurance it needs to conduct its business without worrying about the potential costs associated with a recall event.
What Product Recall Insurance Coverage Offers
Loss of Profits
Most standard recall insurance policies will reimburse manufacturers and processors, as well as their customers, for loss of profits that came as a result of the recall. As an example, with a food product, your recall insurance might cover both the buyer and processor.for the losses.
Restock and Rehabilitation
Your product recall insurance policy may include coverage for the cost of cleaning, reprocessing, or pasteurizing a recalled product so that it meets regulatory guidelines.
Notification
In the event that there is knowledge about the risk of bodily injury or property damage due a product you manufacture, your policy may include crisis consulting coverage that helps your company notify its consumers and help pay for a brand message.
- Disposal costs
- Restocking costs
- Shipping fees
- Warehouse costs
- Notification to public
- Product liability
- Legal and court costs
- Illegal goods
What is product recall insurance?
Product recall insurance, not to be mistaken for product liability insurance, is a commercial insurance product tailored to protecting enterprises from financial losses as a result of the expenses associated with a product recall. Canada saw over 200 food recalls in just 2020 - all of which led to significant replacement costs, penalties from the governments, lawsuits, and lost sales. With product recall insurance, your business can rest easy knowing that if something does go wrong, it has coverage.
Recall Insurance for These Business Sectors:
Our Product Recall Insurance Partners
Whether it’s a food product/consumable item or a component part that you manufacture, having recall insurance is a vital way to ensure that your business isn’t at risk of an unexpected financial loss in the event that a government or regulatory body should mandate a recall or your business makes the call of its own volition due to the knowledge that the product has the potential to cause bodily injury, illness, or even property damage. LMBF has partnered with some of the top insurance companies in Canada to help you find comprehensive product recall insurance based on your business’ needs. Start with a free quote today.
