3 Things You Should Know About Product Recalls

Product Recall 101:
Why the Right Coverage Matters

Key Takeaways:

• Food recall events reach highest levels since 2018—and continue to rise
• Recall expenses extend far beyond the recall itself
• Kinsale provides Recall Expense & Liability for hard-to-place manufacturers and distributors

Product recalls for food are at their highest in six years, and in 2023, overall U.S. product recalls hit their highest numbers in seven years. While recalls for manufacturers and distributors of cereals, bakery products, dairy, seafood, and beverages are up, no business is immune from product recalls.

Businesses rely on your knowledge of Product Recall coverage to protect them from the financial effects of a recall. Here’s what you should know:

• Product Recall costs occur from more than removing an item from the market. Additional costs can include:
  • Loss of sales & damage to brand reputation
  • Legal fees & government fines
  • Cost of corrective actions & ongoing R&D

• Recalling items quickly after an incident can help businesses reclaim their market position— but not having financial backing to do so can be devastating. Consider these statistics:
  • Food recalls average global companies upwards of $10M per incident
  • $55M+ in fines were issued because of consumer product recalls in 2023
  • A single medical device warranty or recall could cost a manufacturer up to $600 million

• Kinsale’s Recall Expense & Liability coverage protects small-to-midsize businesses earning up to $500 million in revenue. Policies include:
  • Primary & Excess coverage with limits up to $5M
  • Flexible minimum premiums
  • Optional primary coverage enhancements tailored to an insured’s unique needs

Ready to send your submission? Our Product Recall team is here for you with the experience and creativity to craft policies that will protect your accounts from the worst.

Explore the Potential of Recall Expense & Liability at Kinsale.