Product Recall Insurance
Product Recall Insurance is insurance coverage for the cost associated with recalling a product such as product testing, recall expenses, replacement or repair costs, loss of income, extra expense, crisis consulting fees, and third party liability.
Product contamination insurance is a type of product recall insurance and is more commonly associated with the food and beverage or consumable product industries. With product contamination coverage, the product need not necessarily be the subject of a recall.
The first line of defence against product recall or product contamination risk starts internally. Every company must have proper quality control and safety plans, good manufacturing procedures, supply chain management, traceability capabilities and a well put together recall plan. Supplementing these procedures with risk management and transfer mechanisms to help test and prepare for a recall crisis and protect against financial loss through insurance should round out your product recall risk management program.
Who needs Product Recall Insurance?
Whether your organisation is an end product manufacturer, a component part producer, or an importer or distributor of products, the cost of a recall, either directly or indirectly, can be staggering.
What does Product Recall Insurance typically cover?
Product recall insurance can help mitigate this risk, with policies designed to respond to both first-party and third-party exposures, including the logistical costs of a recall, and the repair or replacement costs of the recalled product. Additional solutions can be tailored for specific needs – Aon’s ‘4 in 1’ policy covers liability, recall, product guarantee, and financial loss for your organisation.
Why choose Aon for Product Recall Insurance?
Aon’s global network of product contamination and recall insurance experts offer a full range of consultancy services to help organisations quantify risk exposures and make informed decisions on the optimum balance between risk retention, risk management and risk transfer.