Product Recall

Purpose of Product Recall Insurance

Product Recall or Accidental Contamination Insurance offers specialized coverage typically excluded in standard liability and property insurance policies. Increased US Government regulation of manufacturers and importers of food and beverage products makes this coverage more valuable than ever. Don’t just assume it is too expensive!

The process to get a quote is not complicated but will go more smoothly if:

  • You have the time to fill out the application

  • Your company has a written recall plan

One of the benefits of most policies is access to consultants who can help with your plan and be there in case of an actual event.

Food Business Insurance For

Commercial Only Food Businesses | Snack Food Manufacturer | Sauces, Dips and Salsas | Food Co-Packer | Food Importer/Exporter | Candy and Confections

Specialty Foods Wholesale and Distribution | Organic Wholesale and Distribution | Nutraceuticals

USDA logo

No Standard Product Recall Insurance Policy

Product Recall policies differ, there is no standard contract language, so it is helpful to have someone familiar with the coverage to help shop for terms and premiums that meet your needs.

Take the time to understand what triggers coverage because there are many definitions to review.

FDA U.S. Food & Drug Administration logo
www.recalls.gov logo

First Party Coverage

First-party product recall expenses

Can your company take the risk?

Your company can incur expenses to

  • Advertise & Notify

  • Destroy Product

  • Replace Product

  • Loss of Profit

  • Consultant Costs

Third Party Coverage

Third-party product recall expenses 

Contracts can pass on the cost of a recall from your vendors. Have you checked your contracts?

Do they say things like “any and all expenses,” or do they specifically address product contamination issues?

What if your vendor has to pull your product from the shelf, transport it or destroy it? Will they send you the bill?