What are the ways in which your company could be found at fault for damages resulting from the use of your product. You might think that your product—or your role in a product is at little risk of causing damage, but you may be exposed to a range of less visible risks. Consider these factors:
The recall of a product sets in motion a series of events which may involve significant expense. The expenses begin to mount with the cost of pulling the item out of the stream of commerce. In many cases, products must be removed, destroyed, disposed of, and then replaced. In addition, media relations specialists are often retained in order to communicate the details of the recall to the public as well as lawyers and/or government affairs professionals who interact with the relevant government agency.
Most General Liability policies exclude Product Recall claims due to the Sistership Exclusion clause. The intent of the Sistership exclusion is that while insurance covers damages for bodily injury and property damage caused by the product that was defective or failed, it was never intended that the insurer would be saddled with the cost of preventing such defects or failures any more than it was intended that the insurer would pay the costs of the defect in the first place or preventing the first failure if the product has been discovered to be in a defective or dangerous condition before the occurrence.
Product recall insurance will help you cover a wide range of costs, including:
Our agency is an industry leader in Product Recall Insurance. We represent many of the largest insurance companies in the country for Product Recall Insurance. We shop all of these companies to you excellent coverage and premiums.
We serve customers in the states of Arizona, California, Colorado, Nevada, Texas, and Utah.