Product Recall Insurance policy provides coverage against financial losses incurred by insured for recalling the batch of product from the market. This coverage policy “triggers” when the products in question pose an imminent threat of bodily injury or property damage to the public on its usage or consumption.

For instance. food and beverage companies, product recall policy will be triggered when there would be the knowledge that an accidentally or maliciously contaminated product can cause any kind of bodily injury when it is consumed by the public. Even if the product results in a finding of no liability, the insured is reimbursed for certain financial costs related to the incident.

This policy is bought together with the product liability and cannot be purchased independently. A product recall can tarnish your company's reputation, alienate customers and have a major impact on profits. The costs associated with recalling include the cost of transportation, storage and destruction of the product apart from public relations expenses incurred to guard your firm and product reputation. Product Recall Insurance covers it all. Vitality Insurance has its inhouse team of experts to guide you buy the right Product Recall Insurance policy in India with optimal coverage.

1. Recall Costs: Recalling products from the market involves significant expenses from transportation to storage. It covers all costs involved in withdrawing the product from the customer.
2. Third-Party Recall: Includes recall expenses incurred by the third party for the recall of any product that incorporates your concerned product.
3. Replacement Cost: Some insurance companies provide coverage for expenses incurred on replacing or restoring the product.
4. Business Interruption: Recalling a product can impact existing contracts and agreements. Covers Loss of gross earnings or additional expenses incurred as the result of a recall event.
5. Crisis Management: A product recall can tarnish your company’s reputation and customer trust. Covers expenses incurred in restoring lost contacts and regaining market share.
6. Product Guarantee: Few insurance companies provide additional coverage for expenses involved in recalling a product when it fails to meet its guaranteed performance.