FAQ
Frequently Asked Questions
What is recall Insurance?
Product Recall Insurance is designed to reimburse a business for specified first-party losses upon the discovery of contamination or defect of its products. Despite its name, a recall is not necessary to trigger coverage in most cases, and the policy can be crafted to respond to a range of insured events.
Who needs recall Insurance?
Any company engaged in the manufacturing, distribution, sourcing, handling, or sale of products-whether food or non-food-including brands that rely on third-party manufacturers, should evaluate potential risks to their brand. This includes considering brand damage and restoration needs following an insured event.
Doesn’t my property or general liability insurance already cover recalls?
Product Recall Insurance is uniquely crafted to address coverage gaps left by traditional property and general liability policies. Unlike these policies, which typically require actual bodily injury or property damage to trigger coverage, Product Recall Insurance responds to a broader range of events, even in the absence of these elements. Beyond its expansive triggering mechanisms, it also offers reimbursement for specified financial losses across numerous categories that are expressly excluded under property and general liability programs.
Aren’t all product recall policies the same?
Not all product recall policies are alike. It is essential for you or your broker to thoroughly understand the nuances of each policy. At Euclid, we are committed to providing clear, concise, and tailored policy wordings and endorsements that address specific needs and eliminate indistinctness.
I’ve never had a recall before, so why do I need recall insurance?
In today’s complex supply chain environment, coupled with increased government scrutiny and
consumer awareness, it’s not a question of if, but when a company might face a contamination or recall event. No company is immune to recalls, which happen daily. Even businesses that
have operated incident-free for decades can suddenly find themselves dealing with a costly and devastating recall. Without proper insurance protection, many companies cannot withstand the financial impact of such an event.
Another company caused the recall, so wouldn’t they just reimburse me?
It’s always best to have your own insurance policy to protect you, even if another company is at fault. Other companies may not have insurance, their coverage limits may be inadequate, they could be bankrupt, or they might be in a foreign country, making recovery difficult. You could end
up waiting in line with numerous other companies for reimbursement. Each business needs its own recall insurance to ensure comprehensive protection against potential losses.
Is recall insurance expensive?
A stand-alone recall policy may be more cost-effective than expected. Euclid’s unique perspective and approach to the underwriting process specializes in modifying insurance solutions to meet the specific needs of clients, allowing premiums to align in respect to the unique requirements of your business.
How long does it take to get a quote?
Quotes are typically provided within 24-48 hours after receiving a submission. The timing can vary depending on the details provided and whether any follow-up questions are needed. To ensure a quick turnaround, it’s best to include as much information as possible in your initial submission.
Do you have a minimum premium and deductible?
We do not have minimum premiums or retentions.
