Product Recall Insurance

Designed for manufacturers, importers and retailers to protect against the
unexpected cost of recalling a product due to faulty design, manufacturing or tampering.

Who Needs Product Recall Insurance?

Product Recall Insurance coverage applies to a variety of small business manufacturers. Additionally, importers, distributors, wholesalers and retailers may recognize the costs associated with product recalls and look to protect their business from this financial and reputational loss.  This is especially if they are dealing with manufacturers in foreign countries, where they cannot rely on the manufacturer having appropriate insurance that would respond in Canada.  Standard product liability insurance does not cover recalling this exposure or costs, however Canadian Law may still mean that the local Importer, Distributor, Wholesaler, and retailers may bear a heavier portion of these claims if there is no manufacturer to assist.  

Insurers / Markets offering this coverage, will typically agree to cover a range of different product types, for example:



Consumer Goods

Appliances, electronics/electrical, clothes, furniture, household, children’s products, outdoor goods and products, sports/exercise equipment and products, etc.


Component Parts

Parts which are used in the general manufacturing, electronic, medical device, automotive and aviation industry. 


Consumable Products:

Food & beverage companies, cosmetics, pet food, vitamins and pharmaceuticals.

What does Product Recall Insurance Cover?

Product recall insurance for manufacturers, is designed to protect against the unexpected cost of recalling a product from market, due to faulty design errors in manufacturing, or intentional tampering and that may cause harm to customers. 

More specifically recall insurance insurance helps cover the cost of getting a defective product back under the control of the manufacturer or merchandiser who would be responsible for possible bodily injury (BI) or property damage (PD) from its continued use or existence.

Depending on the insurer and wording, Product Recall Insurance covers recall expenses, consultant costs, and defense costs. 

To obtain quotes for this insurance, the insurers will require the following: 

Each Insurer’s policy wordings can be different, albeit similar. Sometimes insurers will offer additional extensions or areas of coverage available to be added/purchased might be:


How do I get Product Recall Insurance Policy? 

To obtain quotes for this insurance, the insurers will require the following: 

  • Fully completed Product Recall Insurance Application
  • Copy of Quality Control Manual (incl. Standard Operating Procedures/Sanitation Standard Operating Procedures, Good Manufacturing Practices, Recall and Traceability Program information

  • Where possible, 5 year Loss History

Want to be proactive about Product Recalls?