Product recall insurance

This type of insurance is designed for manufacturers. The coverage insures against the unexpected cost of recalling a product from the market due to errors in manufacturing, faulty design, or intentional tampering not caused or known by the insured and that may cause harm to customers.

Examples could include situations such as over the counter pain medication, toxic substance unknowingly used in the assembly of an item or packaged meat claims.

A manufacturer would usually choose to have this coverage. Read your policy over carefully. Do ask you adviser for explanations or clarification if you do not understand the wordings. Though insurance is supposed to be written in "clear language" it is often extremely dry and hard to visualize.

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