Recall
Although you have taken every precaution, the products you have manufactured and delivered turn out to be faulty. In that case, they must be taken off the market. It seems unlikely, but if it happens, you will face huge costs and logistical problems. These are often not covered by conventional third-party insurance. Recall insurance resolves this issue.
So when should you get recall insurance?
- A manufacturing defect may cause a device to cause personal injury during use. In that case, all devices of that type must be taken off the market.
- A food manufacturer has to recall its goods in case of an impending salmonella contamination.
- ...
So what does recall insurance cover?
- Transport costs
- Research costs: what went wrong?
- Storage costs
- The cost of replacing the recalled products
- Redistribution costs
- Business interruption: production and turnover losses
- Rehabilitation costs: the cost of restoring the company's image with consumers and suppliers
- Consultant and expert fees