When a defect is found in a production batch, quickly pulling products back from shelves, warehouses and consumers becomes critical for both public safety and brand reputation. Yet items such as announcements, logistics, storage and destruction can quickly add up to a large cost.
Product Recall insurance is designed to cover the costs of recalling defective products within the scope and limits defined in the policy. It is especially important for businesses with serial production and wide distribution networks. We review your product and distribution structure with you and obtain your quote from Corpus Sigorta.
What is covered?
- Costs incurred to recall defective products
- Recall announcements and dealer and customer notification costs
- Costs of collecting and transporting the products
- Storage costs for recalled products
- Destruction costs where required
What you should know
This is a Corpus Sigorta product; you can get a quote through our agency.
Corpus Sigorta offers this product as a liability line that covers the cost of recalling defective products. Which cost items are covered, what triggers a recall and the limits are set out in the policy's special conditions; we clarify these item by item at the quotation stage.
Bodily injury and property damage caused by the product to third parties fall under Product Liability insurance, not this policy. Planning the two together gives more complete protection against the different consequences of a defective product.
Frequently asked questions
It is especially important for businesses with serial production, those distributing through wide dealer and retail networks, and those supplying parts to other manufacturers. Sectors such as food, beverages, automotive supply and electronics stand out.
Whether such indirect losses are covered depends on the policy terms and varies by insurer. At the quotation stage we confirm in writing which items are covered.
Generally not. Product liability covers damage caused to third parties; the costs of withdrawing products from the market are insured under a separate Product Recall policy.
The information on this page is for general guidance and does not replace policy wording. Scope of cover, limits, deductibles and exclusions are determined by the general and special conditions of the insurer you choose.