Product Recall Insurance Quotes for Canadian Businesses
The threat of a costly product recall looms large over manufacturers and importers of many industry sectors. Whether you are a local food and beverage manufacturer or an international supplier of consumer products, a solid product recall insurance policy is an important consideration in the risk management strategy for your business.
When the unexpected necessitates a product recall – whether voluntary or involuntary – a proper product recall insurance policy can go a long way towards loss of profits, rehabilitation expenses, and other related expenses.
Food and Beverage Producer Recall Insurance
Recall insurance for contamination is a necessity for businesses involved in the manufacturing or distribution of food and beverage products. A proper insurance policy for food & beverage producers will address recall-associated expenses due to unintentional adulteration and tampering, as well as some of the costs related to negative publicity resulting from the event.
The insured, a snack bar manufacturer who produced and packaged nutrition bars for its customer, discovered listeria on its production line. This required production to be shutdown for a week and the affected product to be destroyed. The manufacturer filed a claim and was reimbursed $275,000 for the affected inventory, additional labor and overhead, and destruction costs.
Consumer Goods Recall Insurance
Producers of consumer goods require broad coverage for finished products recall insurance. Target risks include manufacturers, importers, distributors, wholesalers, and retailers of areas such as: appliances, electronics/electrical, clothes, furniture, household goods, children’s products, outdoor goods and equipment and products.
A glass and plastic bottle manufacturer contracted with an overseas firm to manufacture glass beverage bottles. When the bottles were determined to be defective, a claim was filed and the insurer worked with the manufacturer in reaching a monetary settlement with the glass manufacturer. The insured was ultimately compensated for the remaining product, freight and drayage costs totaling $792,000.
Recall Insurance for Component Parts
Target clients are manufacturers, importers, distributors, exporters, and wholesalers of component parts in areas such as: component parts in general manufacturing, electronic devices, medical devices, automotive and aviation industry.
Coverages are customized to allow customers to select coverages based on their specific risk management needs and budget.
Product Recall Insurance for Small Business
Small businesses are particularly vulnerable to the costs associated with a recall. Our small business recall insurance products are designed to be an affordable solution for first-time buyers who need coverage but may have a limited budget.
Key features of our Small Business Product Recall Insurance program:
– Target risks include component parts manufacturers, consumer goods manufacturers, and producers of consumable products.
– Ability to customize and tailor coverage to the insured needs;
– Covers small businesses with sales up to $25 million;
– Limits of coverage from $25,000 to $2 million;
– Highly skilled underwriting and claims expertise;
– Backed by insurance carriers with A+ A.M. Best rating.
Let our team of insurance and risk management experts help you build a custom insurance solution to meet your budget. Get in touch to discuss your product recall insurance needs today.