Product recalls can be complex, costly, and damaging to your client’s brand and bottom line. A swift, well-managed recall demonstrates a company’s commitment to safety, quality, and consumer trust, while a poorly executed one can result in reputational harm, lost revenue, and legal complications.
Overview of the Product Recall Insurance Program from CoverXSpecialty
CoverXSpecialty offers a comprehensive Product Recall Insurance program designed to protect your clients from the financial and operational fallout of a product recall. Through a combination of traditional insurance and consultative services, this program provides robust support before, during, and after a recall event. With experienced underwriters who understand the nuances of both U.S. and international recall exposures, CoverXSpecialty delivers tailored solutions across a wide range of industries.
Ideal Accounts and Appetite
This program is designed for businesses that manufacture, import, distribute, or sell consumable or consumer products, as well as component parts. Target classes include:
- Consumable Products: Food and beverage companies, cosmetics, tobacco, pharmaceuticals, and pet food (excluding animal feed). Includes suppliers, co-packers, processors, bottlers, importers, distributors, packagers, and wholesalers.
- Consumer Goods: Finished products in categories such as appliances, electronics, clothing, furniture, household items, children’s products, and sporting goods. Risks may include manufacturers, importers, retailers, and wholesalers.
- Suppliers & Component Parts: Manufacturers and distributors of components used in general manufacturing and automotive industries. For automotive, Tier 1–4 only.
- Restaurants: Local and regional restaurant chains, including franchisees. National chains may be considered for high excess layers.
Example: You might have a client who is a regional snack food manufacturer or a supplier of plastic parts to an automotive OEM. This program can help mitigate their exposure in the event of contamination, defect, or mislabeling.
Coverage Highlights and Advantages
- Base policy includes coverage for recall and consultant costs with no self-insured retention (SIR) and no limit on consultant services.
- Policyholders can customize coverage with available add-ons such as:
- Loss of Profit
- Replacement Costs
- Rehabilitation Expenses
- Customer Loss of Gross Profit
- And more
- 24/7 emergency hotline for immediate access to recall consultants.
- 10% of net premium available annually to fund loss mitigation efforts.
Underwriting Notes and Minimum Premiums
There is no stated minimum premium, making this program accessible for a range of business sizes. Underwriting is handled by dedicated professionals with deep industry knowledge, which allows for thoughtful customization based on your client’s unique exposures and risk profile.
Territories and Availability
This non-admitted program is available in all 50 states plus the District of Columbia. CoverXSpecialty brings non-admitted flexibility to offer tailored solutions in jurisdictions across the U.S., helping you find coverage when standard markets may fall short.
Why Work With CoverXSpecialty
As both a general agency and carrier, CoverXSpecialty brings a unique blend of underwriting authority and market access. Their product recall team includes some of the most experienced professionals in the industry, offering you and your clients access to coverage and insights typically reserved for large corporations. From pre-incident planning to post-recall recovery, CoverXSpecialty is a true partner in managing product recall risks.
Frequently Asked Questions
What types of accounts are a good fit for this program?
Ideal accounts include manufacturers, importers, and distributors of consumable goods, consumer products, component parts, and regional restaurant chains.
Can coverage be customized to fit specific client needs?
Yes, policyholders can tailor their coverage with optional add-ons such as Loss of Profit, Rehabilitation Expenses, and more.
Is there a minimum premium requirement?
No specific minimum premium is required, making the program suitable for a wide range of business sizes.
Does the policy include access to consultants during a recall event?
Yes, the program includes unlimited access to recall consultants through a 24/7 emergency hotline, with no SIR applied.
In which states is this program available?
The program is available in all 50 states and the District of Columbia on a non-admitted basis.
Need help placing an account? Connect with a market specialist.