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Product Recall Insurance

Mitigating your first-party risk and protecting your balance sheet.
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Specificity

Insurance designed to explicitly address first-party costs associated with a recall event.

Indemnity

Coverage for costs associated with recall efforts, product replacements, and crisis management.

Expertise

Our specialists work with you to tailor coverage to your unique exposure and risk appetite.

The financial and reputational ramifications of a product deemed unsafe are hard to predict. For many organizations, unforeseen deviations in procedure, changing suppliers, human error, and more have all led to severe, lasting, and damaging losses that are costly to rectify and can take months — even years — to fully recover from. In the event of a recall, things that are outside of a manufacturer’s control can lead to permanent scars on the health of the company.

Fortunately, there are risk transfer options to help mitigate your risk and protect your balance sheet. Since product recall and replacement costs are not typically covered by general liability coverage, insurers have been adapting policies to the ever-evolving product safety risk environment. Several sub-categories of coverage exist, depending on the exposure. 

Today, more than 30 markets offer product recall coverage and each may write one or more major industry segment: restaurants, food and beverage manufacturers, consumer goods, and component parts.

The regulatory environment for product manufacturers is constantly evolving. Lawmakers regularly enact new legislation, and inspectors’ initiatives systematically target new segments of the global web of goods.

If an equation could easily produce a manufacturer’s most likely loss scenario, and associated total cost, it would invariably contemplate each manufacturer’s position in the supply chain, type of product, what is wrong with the product, how much is affected, and other calculable factors. 

Unfortunately, incalculable variables can directly influence losses and must be contemplated, including:

  • FDA, USDA, CPSC, and other regulators — What will it take to satisfy inspectors about safety and risk management procedures?
  • Loss of confidence — How likely is it that your customers will continue buying your product?
  • Social sentiment volatility — Depending on the gravity of the event and its newsworthiness, how likely will it have a lengthy news cycle?
  • Pre-loss performance – How long will it take you to return to normal and to resume growth?

To help you stay ahead of your product safety risks, Marsh’s Product Recall Practice consists of a team of brokers with a sole focus: product recall insurance. Our specialists work with you to learn your operations, help you identify your potential exposures, and help you secure insurance coverage that can help protect your bottom line in the face of a recall event.

Why Marsh

The professionals of Marsh’s Casualty Practice are invested in learning your business to help you achieve your goals. We have the scale to invest in our capabilities, and the complexity of risks to specialize and innovate. As a result, we keep developing resources and evolving necessary tools and analytics to help you address for your most strident challenges.

Practically, we can handle and focus on anything from the most complex issues down to day-to-day blocking and tackling of service needs. We are able to address the marketplace challenges you face and support you with our considerable resources when it matters most.

Our people

Geoffrey Mills

Geoffrey Mills

Practice Leader, Product Recall Practice

Ryan Roth

Ryan Roth

Placement Specialist, Product Recall Practice

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