Product Recall Insurance

How can agents communicate the importance of this type of exposure to the industry? There is a natural resistance by all companies in buying additional insurance. A recall event is not a physical damage event. It does not trigger any of the standard insurance policies. This type of unique recall insurance policy may be the needed stability of risk financing for a manufacturing company. There are a series of converging elements in all manufacturing industries that are having a considerable impact on all manufacturers. A leading indicator is the increased number of recall events. Whether a recall event triggers from malicious contamination, accidental contamination or unintentional error or products extortion, a company will have a dramatic drop in sales and may even be closed down by government regulators for an unknown amount of time. Don't forget rent, utilities and salaries - all of those continue. The double impact of revenue loss and accumulating extra expenses is an ideal candidate for risk transfer in the form of a Recall Crisis Recovery PLUS (RCR PLUS) Insurance product offered by Professional Liability Insurance Services, Inc. - Underwriting Facilities (PLIS).