Product Recall Insurance is a policy designed to help get a defective product back under the control of the manufacturer or merchandiser that would be responsible for the bodily injury (BI) or property damage (PD) caused by its continued use or existence.


Here’s what you need to know about Product Recall Insurance:

  1. A standard product liability policy contains a “sistership liability exclusion” that is now commonly known as the “product recall exclusion”

  2. A manufacturer’s customer will not regularly require the manufacturer to carry product recall coverage but a recall is not a physical damage event and will not trigger any standard insurance policy

  3. Whether a recall is caused by malicious contamination, accidental contamination or unintentional error or products extortion, a company can have a dramatic decrease in sales and may be closed down by government regulators for a long period of time

  4. Certain product recall policies can reimburse a company for loss of revenue and various expenses including product retrieval, product replacement and pre-recall continuing expenses like rent, utilities and continuing payroll

  5. Some product recall policies include a crisis management component to help business owners during an overwhelming process of government regulators (CSPC, DOT, USDA, FDA, CDC) demanding extensive amounts of unusual information

Swingle, Collins & Associates specializes in product recall insurance coverage in Dallas, Southlake, Westlake, Plano, Coppell, Irving, Argyle and the surrounding areas.  The descriptions of product recall insurance coverage listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs please contact your dedicated risk manager. The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverage, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.