Recent spikes in U.S. product recalls, especially from undeclared allergens in food, highlight the growing importance of Product Recall Insurance. As companies face enhanced risks, this insurance is no longer optional but a necessity for protecting against financial and operational setbacks.
“Defense outside the limits” is a term used in insurance that refers to the coverage provided by the insurer for expenses incurred by the insured in defending against a claim, even if the claim is ultimately found to be outside the scope of the policy. While “defense outside the limits” coverage is not required by law, it is often included in business liability policies as an added layer of protection for the insured.
At this time, with the COVID-19, while people are encouraged to exercise social distancing, more and more people shop online, and more sellers go online to sell their products, from masks and sanitizers to pretty much everything else you can imagine. To protect your business and operations, Product Liability Insurance is a MUST HAVE essential coverage. With this post on our blog, we are beginning a series of videos about product liability insurance. Watch the first video about the cancellation of product liability insurance. [divider_line] [button link=”https://www.paperless-insurance.com/line-of-business/product-liability-insurance/product-liability-insurance-quote/” linkTarget=”_self”]Request Product Liability Insurance Quote[/button] At Paperless Insurance Services, Inc we’ve been offering… Read More »Can I cancel my product liability insurance at any time?
In December of 2016, a furniture chain agreed to pay $50 million to settle a lawsuit after its dressers tipped and fatally injured small children. All product manufacturers, designers, and retailers are exposed to a multitude of risks that can end in litigation. With manufacturing and retail contributing $3.8 trillion to the U.S. economy, there is a vast need for protection in these industries. However, some products are too hazardous to be included in a standard CGL policy as they have an obvious potential for costly and widespread lawsuits. New products can also be excluded as they lack a track… Read More »Products Liability Coverage from Paperless Insurance
Licensed attorney and insurance broker Diana Motseniat talks about the product recall insurance. We offer Product Recall coverage in multiple states of the USA. To get a quote complete this application: https://www.paperless-insurance.com/insurance-application/product_recall_insurance_application.pdf Learn more about Product Recall: https://www.paperless-insurance.com/product-recall-insurance-explained/ [tvideo type=”youtube” clip_id=”5LTC5UdYQe0″]
[highlight type=”light”]The following is a theoretical scenario.[/highlight]
USA Sugar is a processor of sugar. They bring refined sugar into their production plant, where it is transformed into a liquid form and sent to USA Sugar’s customers, who use the liquefied sugar in various food manufacturing applications.
On May 15, 2015 the FDA contacts USA Sugar and notifies them that salmonella was found in beverage products manufactured by two separate companies. Both strains of salmonella have been traced back to USA Sugar’s liquid sugar product. After a series of tests, it is determined that the liquid sugar was in fact the source of the salmonella. It was also determined that the salmonella contamination occurred in the insured’s facility between March 3 and March 17, which was a period of roughly two weeks. On March 17, all production lines were broken down and a thorough cleaning was performed. The products manufactured after the March 17 cleaning appear to be free of salmonella.
As a result of the findings, USA Sugar decides to perform a voluntary recall of all products manufactured between March 3 and March 17. In addition to USA Sugar’s recall, all products containing USA Sugar’s contaminated liquid sugar will need to be recalled. The FDA classifies all related recalls as Class I, meaning consumption could result in serious health problems or death.Read More »Ingredient Manufacturers and Their Product Recall Risk
If Product Recall Insurance is something you have not heard of before, here is a good example for you. Play-Doh Penis is something that was in one of the Play-Doh sets by Hasbro sold for Christmas this year. It wasn’t a penis really, but rather a play-doh dispenser, but it was in a form of a penis. Many kids got it as a present. Next morning, there was a huge recall by Hasbro. Hasbro is asking to mail the penises back to them. Instead, it will replace it with something that looks slightly less than a penis. Who is paying… Read More »Play-Doh Sold Your Child a Toy Penis
If your product is decorated with swastikas, will it be covered? This is a good question for a product liability carrier that provides coverage to Hallmark. http://nypost.com/2014/12/09/hallmark-pulls-hanukkah-wrapping-paper-covered-in-swastika/ Every holiday season, there is at least one store that beats it all with the most “innovative” product of all. This year, the “Grammy” goes to the Hallmark store. They have managed to manufacture and sell Hanukkah wrapping paper covered … in swastikas. I would not buy it. Those who do and feel offended by it, why not file a product liability claim against Hallmark? Their policy, like many other product liability policies,… Read More »Hallmark pulls Hanukkah wrapping paper covered in swastikas
What is the one thing you expect to see the least in a restaurant? A flying drone! But not in NYC. A drone was flying in TGI Friday’s restaurant last week and cut someone’s face open. Was it a simple accident or product failure? If product failure, is there a product liability insurance in place? Sure many insurance companies provide product liability insurance for drones. If you are maker, seller, manufacture, distributor or an importer of the UAV (an unmanned aerial vehicle (an aircraft piloted by remote control or onboard computers) product – get your product liability insurance in place.… Read More »Product Liability Insurance for UAV (drone)
As you have probably heard Zara was “caught” selling Holocaust-Inspired Striped T-Shirts. This is not the first time Zara has came up with a “designer” product like that. Of course, Zara has apologized and quickly recalled the products.
Too bad for Zara, because as with any product recall, there is a huge cost $$$$ to recall the products from the shelves.
Most likely they have a Product Recall Insurance in place which has saved them.. but what if they wouldn’t have it?Read More »Zara Paid $$$$ to Recall its Holocaust-Inspired Striped T-Shirts