What is Product Recall Insurance?
Product Recall Insurance is a Business Insurance policy that handles costs connected with recalling an item in the marketplace. Product recall insurance is commonly bought by producers such as drink and food, plaything and electronics businesses to cover expenses such as consumer telling, transport costs and removal expenses. Although additional coverage may be bought to cover the expense of third parties, coverage typically pertains to the business itself.
Product recalls may be involuntary (demanded by a regulatory agency or the authorities) or voluntary (the maker sees a deficiency that is unlikely to compel an involuntary recall), and can be expensive. Some item kinds are normally not protected under product recall insurance, including cars and associated cigarettes, explosives and items.