Product Recall, Got to Keep Your Business Running

As a business owner you know it is important to have a good relationship with your customer. If your product contains a flaw or defect that may result in bodily harm or property damage to whomever purchased or is using your product, it could cause devastating damage to your business. You need recall insurance, also known as products recall or withdrawal insurance. If your product is recalled, it would require extreme and costly measures to get your company back on track to its original status.

Recall insurance may be purchased separately from your regular commercial liability or can be a policy added to your current insurance plan. Recalls may be invested by the company itself or can me mandated by an authoritative body that oversees the product in question. A public notice is sent out notifying that a problem has been discovered and that the customers are urged to return the product or throw it away. Regardless of decision being voluntary or involuntary, recall insurance usually provides coverage for various expenses including:

• added payroll due to overtime or for hiring and paying temporary employees to assist with recall/withdrawal
• computer expenses
• costs for transportation and accommodations for withdrawal/recall personnel
• proper product disposal
• postage or fax expense
• paper, design and printing cost of withdrawal announcements
• warehouse or storage space costs
• public notification of recall or withdrawal

You don’t want your relationship with you customer to diminish due to a product that needed to be recalled. Call Partee Insurance Associates and we will make sure you have the policies you need to keep your business running.