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

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

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.



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.

  What recall insurance covers
  • Disposal costs
  • Restocking costs
  • Shipping fees
  • Warehouse costs
  • Notification to public
  What recall insurance does not cover
  • 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:

As a business owner of a manufacturing company, an agribusiness, or a retail store, you already know how difficult it is to produce high-quality products, maintain professional relationships, and continue to drive up sales. Product recall insurance acts as a loss prevention reimbursement policy that can cover a number of expenses that may come of a recall event. The following business sectors and individual enterprises are just a few examples of the companies that may benefit from purchasing recall insurance.
Manufacturing Industry


  • Metal manufacturers
  • Autobody part manufacturers
  • Chemical manufacturers
  • Food manufacturers
More info
Agriculture Industry


  • Hobby farms
  • Commercial farms
  • Beef farms
  • CBD plantations
More info
Retail Industry

Retail Industry

  • Liquor retail
  • Grocery retailing
  • Furniture retailing
  • Garden supplies retailing
  • Auto parts retailers
More info
Wholesale Distribution Industry

Wholesale Distribution Industry

More info

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.

Get an Instant Quote

Looking to Purchase Product Recall Insurance for Your Enterprise? Get Started With a Free Product Recall Insurance Quote Below.

Get a Quote

Product Recall Coverage: Some Frequently Asked Questions

A: Product recall insurance can cover businesses that manufacture component parts, a finished product, or consumable goods. Product recall insurance is designed to cover financial losses arising from the recall of a product from the public market. While coverage is generally intended for the firm that manufactures and distributes the product, additional coverage may be added on to include the cost of third-parties.

A: No - product liability insurance and product recall insurance are different products. Product liability is triggered when there is bodily injury or property damage caused by a product that has malfunctioned. Product recall is triggered when a product is recalled from the market and helps to cover any resulting financial losses. Both are highly recommended for enterprises that depend on the sales and distribution of a product.

A: It depends on your business. You might expect that your product recall insurance premiums will vary depending on your business and industry, who you sell to, potential recall costs, what you sell and how much, different products you sell, business history, insurance history, and the history of that product in public markets.

A: Product recall insurance triggers when an insured product poses the risk of bodily injury or property damage. (is product recall claims made?)

A: Product recall insurance is not mandatory, however it is highly recommended for any enterprise that produces a product as the financial losses resulting from a recall can be devastating. Recalls can be either involuntary - i.e, mandated by government or regulating body - or they can be voluntary - i.e, the business chose to recall.

A: Product recall insurance is necessary due to the prohibitive costs of a potential recall. Insurance for food product recall is especially recommended due to the high number of recalls in the food and beverage industry. Another reason to purchase product recall insurance is governmental oversight. The number of recalls that happen due to government product safety protocols is higher than ever in recent years.