Synapse offers coverage for expenses related to financial losses associated with recalling a product from the market.
Product recalls can be involuntary (required by a regulatory agency or the government) or voluntary (the manufacturer notices a defect that is unlikely to force an involuntary recall). Product recall insurance is typically purchased by manufacturers such as food, beverage, toy, and electronics companies. Coverage generally applies to the firm itself, though additional coverage can be purchased to cover the costs of third parties.
Reasons to Purchase
Recalls remain high – product recall events happen almost every day; rarely does a day pass without news of a company’s goods being recalled for safety or illness reasons
Government oversight – the U.S. government is implementing more stringent product safety protocols
Recall costs – expenses of a product recall begin to mount, starting with costs associated with pulling the identified product off shelves and from transit; in many cases, products must be removed, destroyed, disposed of, and then replaced
Coverage Options
- Notification of customers
- Recall and replacement costs
- Business interruption
- Brand rehabilitation
- Crisis consulting
- Your customers’ economic loss
Target Classes
- Food and beverage industries
- Electronic, metal, and plastic components manufacturers
- Medical devices and instrument manufacturers
- Household goods manufacturers
- Automotive and parts manufacturers
