Recall Insurance

A company run responsibly acts when it finds out there is something wrong with the product. That action is often a recall. Sending out a public notice that a problem has been discovered and that customers are urged to return the product. Fortunately, there is a type of coverage that can handle many of these costs: recall insurance. It can be added to a policy that handles an operation’s regular commercial liability. However, it may also be purchased as separate coverage. 

Recall insurance responds to instances when a company either knows or suspects that its product contains a flaw or defect that may result in bodily harm or property damage to person buying and/or using the product. The coverage applies to instances of both voluntary and involuntary recalls. Regardless, it provides coverage for various recall expenses including: 

  • Added payroll due to overtime
  • Hiring and paying temporary employees to assist with recall/withdrawal 
  • Computer expenses 
  • Costs for transportation and accommodations for withdrawal/recall personnel 
  • Paper, design and printing cost of withdrawal announcements 
  • Postage or fax expense 
  • Proper product disposal 
  • Public notification of recall or withdrawal 
  • Warehouse or storage space costs 


A broader (usually separate) form of coverage handles added costs of battling against a company’s impaired reputation. Also called crisis insurance, it handles the expense of PR and advertising activity that follows a recall event.  

Contact a Hertvik Insurance Group professional when considering recall coverage for your business.