Product Recall Insurance generally requires detailed underwriting information because the exposure varies substantially between products and businesses.

What basic business information is required? #

This can include:

• Business name.
• Turnover.
• Business activities.
• Years operating.
• Locations.
• Geographic breakdown of sales.
• Required policy limit.

What product information is required? #

Insurers may ask for:

• Types of products.
• Percentage of sales by product.
• Whether the business manufactures, imports, distributes or retails.
• Whether products are sold under the business’s own brand.
• Major customers.
• Export markets.
• Products supplied to the USA or other overseas markets.

What manufacturing information can be required? #

Depending on the business:

• Manufacturing locations.
• Contract manufacturers.
• Ingredient or component suppliers.
• Quality assurance processes.
• Product testing.
• Batch controls.
• Traceability systems.
• Packaging arrangements.

What recall information may be requested? #

Insurers can ask about:

• Written recall plans.
• Product traceability.
• Recall testing or simulations.
• Crisis management arrangements.
• Previous recalls.
• Product contamination incidents.
• Customer complaints.

Why is traceability important? #

A business that can quickly identify affected batches and where they were distributed may be able to conduct a more targeted recall.

This can materially reduce the potential financial loss.