Product Liability policies will cover legal liabilities for damage and injury to third parties but do not provide indemnity for recalling a product off the shelves which can lead to significant costs. In such a situation, it is essential to maintain key relationships in place. Restoring production and protecting cashflow are vital.
The skilful handling of a recall reduces the damage caused by a faulty product and also shows clients your professionalism in having this eventuality covered. Policies are available on a first party basis, covering the main areas of expenditure, such as Communications and media, transportation, warehousing, additional staff costs, with the option to extend to cover your gross profit. The costs of independent consultants to assist you are also included within the policy cover.