Product Recall Insurance

Even the best run businesses can experience problems from time to time. If you manufacture or produce a product, there is always a possibility, however remote, that you may be faced with a product recall. There are two main types of recall. The first is an involuntary recall, where the manufacturer is notified by a government body that there is a fundamental problem with the product that could cause illness or injury to the public. The second is a voluntary recall, where the manufacturer notices that there may be an issue with a product and carries out a recall to rectify the problem.

Both types of recall can result in costly expenditure to put the situation right. To protect yourself against the costs of a recall, it is wise to take out product recall insurance.

Product recall insurance is particularly important for manufacturers in the catering industry, and those who make and distribute cars, toys and electronics. It is designed to help cover the costs of disposal of faulty goods, replacement components, customer notification and announcements, and shipping costs. Product recall insurance can also include coverage in case of legal claims by third parties. For example, if a toy you manufacture has injured a child and it has been shown that the toy is faulty and therefore directly responsible for the injury, comprehensive product recall insurance will include a public liability clause that will cover your legal costs.

Protect your business by talking to Park Insurance

At Park Insurance, we know how much your business’ reputation means to you. That’s why we go out of our way to find you the best deals on product recall insurance, as well as comprehensive public liability insurance and personal liability insurance deals. Our expert advisors can discuss your requirements with you and assess the right coverage that will safeguard your business’ future. So if you want to make sure that your business is covered, even when things go wrong, talk to us today and find out how we can help.