What does a product recall insurance policy cover?

• Advertising and promotional costs to launch the recall.
• Shipping costs to collect recalled products.
• Product destruction and disposal costs.
• Warehouse and storage expense.
• Product replacement, repair and distribution costs.
• Fees to wholesalers, distributors and retailers.
• Business interruption costs.
• Reputation repair and management costs.

What do contamination insurance policies cover?

• Recall costs, including laboratory analysis and product transportation.
• Announcement costs, such as radio, television and Internet placements.
• Third-party recall expenses.
• Loss of gross profits, typically up to 18 months.
• Rehabilitation expenses.
• The value of contaminated products.
• Crisis response and consulting expenses, including public relations and recall consultants.
• Increased cost of operations.
• Extortion costs.

What about my CGL policy?

• Specifically excludes coverage for recall of Products, Work or Impaired Property.
• Specifically excludes property damage liability coverage for the Products-Completed Operations Hazard.
• In most cases, provides bodily injury liability coverage for third parties injured by the insured’s products.
• Very limited product recall or contamination coverage may be available by endorsement, depending on the insurer

Does your insured grow, produce, design, manufacture, distribute, sell, or handle a physical product? Talk to them about Product Recall/ Contamination insurance . . . Then call the experts at SIU.