Limited Product Withdrawal Expense Insurance helps for things like:
- The extra expense to rent or hire additional warehouse or storage space.
- The costs related to notification of the product withdrawal.
- The cost to hire additional people, other than you regular employees.
These scenarios illustrate how valuable this coverage can be for your business.
- A metal fabricator becomes aware of a dangerous flaw in one of its railing brackets and it’s determined a product recall is necessary. Expenses associated with withdrawal notification, overtime pay to employees and additional warehouse space amount to $150,000.
- A dairy products manufacturer was found liable for product recall expenses incurred by a chain of grocery stores that sold one of its cheese products. A dangerous bacteria found in the cheese caused severe illness to 50 people several children required hospitalization. Expenses incurred by the grocers for notification, overtime pay, warehousing and product disposal amount to $220,000.
In a nutshell, limited product withdrawal expense insurance pays for the reasonable and necessary extra expenses you insure for the withdrawal or recall of your products due to:
- Known or suspected defects in your products which caused or are reasonably expected to cause bodily injury or physical injury to tangible property and
- Known or suspected product tampering.
To find out more about Limited Product Withdrawal Expense Insurance, please contact us today.