RECOVER AFTER A RECALL
Key coverages for product recalls
Often paired with product liability, product recall insurance helps your business recover from a product recall by helping to cover the associated costs. This could include removal and replacement costs, operational downtime, and crisis management. These unexpected costs can put significant financial strain on your company.
Recall costs
This coverage helps to pay for expenses to remove a defective product from the market, including notifications, logistics, and product disposal.
Replacement costs
When you're required to repair or replace a recalled product, this coverage helps to cover materials, labour, storage, shipping and other overhead costs.
Business interruption
A product recall can disrupt operations, reduce sales and cause customers to take their business elsewhere. This coverage can help replace lost income during the interruption and, depending on the policy, for a period following the recall while sales and customer relationships recover.
Crisis management
A product recall can attract negative media attention and damage your company’s reputation. This coverage helps pay for crisis management, public relations and communications specialists who can help manage the media response, communicate with customers, and other stakeholders, and rebuild trust in your brand.
YOUR TRUSTED ADVISORS
Navacord’s advantage for product recall insurance
Our experienced brokers understand the risks involved in manufacturing and distributing products across Canada and around the world. We’re here to help ensure your business has the right protection.
Manufacturing expertise
With diverse experience across a variety of product-driven businesses, we’re equipped to provide a recall policy tailored to your products.
Planning ahead
In addition to providing coverage, we can help you develop a product recall plan that guides you through each step of the process.
Claims support
In the event of a product recall, our in-house claims team brings reliable support to help your business recover quickly.
Learn from our product recall coverage experts
Many businesses focus on the cost of removing a product from the market, but the larger exposure is often the interruption to operations and the impact on customer trust. An effective product recall strategy combines insurance with a clear response plan so your business can act quickly, control costs, and protect its reputation when every decision matters.
FAQs for product recall insurance
When your business experiences a product recall, regardless of fault, this insurance can cover expenses such as product losses, replacement and disposal, media and recall announcements, overtime payroll and temporary staffing, crisis management and more.
Our expert advisors will work with you to deliver a comprehensive policy that covers a variety of costs associated with executing a product recall, and help your business navigate the fallout.
Any business that manufactures, distributes or sells goods could experience a product recall. Product recalls are often complicated and expensive, and they can damage your company’s reputation. For these reasons, product recall insurance is strongly recommended as it helps cover your operational and the reputational costs at time when your business needs it the most.
At Navacord, we deliver product recall insurance at competitive rates to a variety of Canadian businesses. The cost of your policy will depend on several factors including the type and volume of products you sell, your distribution, and your industry’s regulations. The cost of your policy will also be impacted by your company’s claims history, and the coverage limits you choose.
Product recalls can occur for a number of reasons. Whether it's a safety concern, contamination, product defect, or regulatory non-compliance, our advisors will work with you to understand the unique risks of your business and prepare a policy that meets your needs.
