Product Recall Exclusion

Definition of "Product recall exclusion"

Shauna M. Talbot
  Talbot Realty LLC (MD)
Blue Wave Realty (FL)

Exception in general liability policies for all expenses associated with product recall. In recent years, there have been increasing instances of federal recalls. In addition, there have been many instances of deliberate tampering and of manufacturers issuing their own recalls. In either event, the cost of identifying the products, communicating with consumers, inspecting the returned products, and repairing or replacing them can be enormous. These costs are excluded from general liability policies, but product recall insurance can be purchased for this purpose.

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