How do product liability and recall insurance policies work, and where do they commonly disappoint?

Product liability and recall insurance protect against harm caused by, and the cost of withdrawing, defective products, but the two covers often disappoint precisely where exposure is greatest.

Recall cover may exclude purely precautionary withdrawals, cap consequential loss, or require a defined trigger of bodily injury or property damage before responding. For a senior executive in manufacturing, food or consumer goods, the gap between expected and actual recovery can be severe.

The report explains how these policies operate in your chosen jurisdiction and industry, the triggers and common exclusions, and the interaction with product-safety regulators.

It covers warning indicators of inadequate cover, indicative loss ranges from published recalls, and when to engage coverage counsel, brokers, loss adjusters and crisis specialists.