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You Have Large Commercial Property Accounts. We Have Solutions. Key Takeaways: Commercial Property coverage for accounts with up to $15B in TIV Broad…
Key Takeaways:
Even if you appreciate the value of Product Recall coverage, sometimes getting agents – and their clients—to understand its essential nature can be a struggle. There are times agents and businesses often don’t realize just how severe the financial consequences of a recall can be, or they consider recall insurance a “luxury coverage” that doesn’t need to be prioritized.
The fact is, product recalls are on the rise, and when agents fail to include Product Recall coverage as part of a comprehensive coverage package, they fail to protect their clients.
That’s where you come in.
Our quick tutorial will walk you through three simple ways to help agents understand the value of Product Recall coverage.
Help agents know how Product Recall coverage works well enough to explain it to their clients. Kinsale’s Product Recall Liability & Recall Expense protect a business’s financial assets by helping to cover the direct and indirect expenses of a recall via reimbursement. Unlike a GL policy that is triggered by damage or injury after an event, Product Recall coverage can be triggered as soon as a product defect is discovered.
Even when agents are actively trying to build recall policies, they’re sure to get pushback from prospective policyholders in the form of common recall myths or misconceptions. Give them the facts to debunk these myths with their clients.
It won’t happen to our business. |
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The Facts Product recalls have reached record levels in recent years, affecting everyone from major brands to small manufacturers. Leading recall advisors at Sedgwick Brand Protection estimate an average of 12 recalls happen on any given weekday, and food-related product recalls are at their highest in six years. Experts remain firm: Recalls are an “if,” not “when,” scenario, and no one is immune. |
Product Recalls will be covered under a Products General Liability policy. |
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The Facts Recall insurance is a separate coverage from Products/General Liability with a different coverage trigger. Most GL policies specifically exclude recalls and associated costs. To create a comprehensive insurance plan and follow best practices for manufacturing and distributing businesses, businesses need both Products General Liability and Product Recall coverage. |
Recall coverage is too expensive and a “luxury.” |
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The Facts Having the financial backing to quickly and effectively mitigate the costs of a recall is not a “luxury”, it is a necessity for many businesses’ survival. Consider these statistics:
Now consider that Kinsale offers recall coverages with premiums starting as low as $1,500. The truth is many businesses can’t afford not to have Product Recall insurance. |
Recall costs are limited to pulling products off the shelves. |
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The Facts Recall costs can include loss of sales, damage to brand reputation, legal fees and government fines, costs for corrective actions, ongoing research and development, and more. The combined costs can be staggering and, especially for small businesses, devastating. With the right Product Recall coverage, as soon as a product is ruled defective, policyholders can act quickly to remediate losses and keep their business moving forward. |
We’re safe. We have strong quality control & carefully screen our suppliers. |
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The Facts Mistakes happen. Recalls can be triggered by even the smallest changes in operation or come down to simple human error. Recalls most commonly result from design flaws, inadequate warnings or instructions, improper labeling or reporting of allergens, cross-contamination, and even marketing misrepresentations. Naturally, the same rules apply to third-party vendors and supply chain providers. Without full oversight of every supplier’s operation, any link in the supply chain could cause a recall event. |
Explore Kinsale’s Product Recall Liability & Recall Expense coverages. We understand that many businesses are left vulnerable in the event of a recall, and we specialize in small-to-midsize businesses earning up to $500 million in revenue. Policies include:
Our dedicated recall team will answer questions, and most importantly, provide customized quotes that prove just how easy—and important—it is to include Product Recall coverage as part of a comprehensive protection plan.
Contact Our Product Recall Team
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