A Recalled Product Doesn't Define Your Business
A recalled product doesn't define your business.
Have you ever wondered what would happen if one of your products gets recalled due to a defect? Product recalls are made to protect consumers in the first place but what if accidents were made such as machine malfunctions that caused the product to be defected? What kind of cost would you incur in the recall process? And even more important, what type of insurance would cover these losses? Is there insurance that will specifically cover you for recalled products? Fortunately for you and your business, there is insurance for product recalls that will allow you to mitigate losses when one of your defective products is sent back to you.
Product recall insurance was essentially created to cover expenses directly related to recalling a product. Manufacturing companies dealing with the creation and assembly of products are the principal consumer of this insurance product. The basic coverages of this insurance might include the insured cost to notify customers about the recall, the shipping back cost, and the cost of disposal of the products. Upgrading coverages might allow you to get coverage for also the cost of replacing (manufacturing again) the recalled products. Higher upgrades will also cover the cost of recalling and replacing products for third parties involved and might also even offer coverage for monetary losses suffered by third parties due to the product recall. Depending on the accident, professional and commercial general liability can help you. The price and materials of the product will definitely matter. That's when professional liability helps you with accidents that have to do with your profession and commercial general liability will help you with your business property. In an example if someone came into your studio or business and they slipped and fell on your property commercial general liability can help.
To learn more about the coverages of Product Recall insurance, consult with us. Here we leave a link to our insurance inquiry form for Product Recall insurance. If you would like to learn more about commercial general liability and professional liability find more on our website!