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Products Liability

Product recall insurance covers expenses associated with recalling a product from the market. Product recall insurance is typically purchased by distributors, manufacturers, some retailers, and electronics companies to cover costs like customer notification, shipping and disposal costs. Product recall claims can come from manufacturing errors, design faults, human error, tampering, packaging errors and more. The consequences to a firm’s profits and balance sheet can be severe, even fatal. Coverage generally applies to the firm itself, though additional coverage can be purchased to cover the costs of third parties.

The experts at ECC are ready to extend their services to help you analyze and secure the best possible coverage to fit your client’s firm and protect their company. Your clients will want to purchase Product Recall Liability from ECC to meet the needs of a diverse industry. Backed by companies with “A” ratings and financial stability, ECC provides the most up-to-date coverage available in the marketplace.

 Why Select ECC for Your Product Recall Insurance?

  • Strong carrier financials to protect your client’s product recall exposures
  • Professional claims team
  • Superior underwriting talent
  • Outstanding customer service

This Coverage is Offered for Classes of Business Including:

  • Manufacturers of component parts
  • Manufacturers of finished goods
  • Food and beverage
  • Pharmaceutical

Common Sources of Product Recall Claims

  • More than 90 tons of prepackaged salads and sandwiches from a California catering company were recalled because a bacterial strain of E. coli was linked to the products. The USDA’s Food Safety and Inspection Service said that it recalled the salads and sandwich wraps containing cooked chicken and ham after 26 people in three states were sickened with a strand of E. coli.
  • A compounding pharmacy recalled sterile products because of the possibility of contamination. XYZ Company voluntarily recalled the sterile products produced over a six-month period. The U.S. Food and Drug Administration said the recall occurred because of concerns about the quality control procedures that could pose a potential risk about the sterility of the products.
  • XYZ Company of N.Y. recalled 3,000 area rugs. The rugs failed to meet federal flammability standards, posing a fire hazard to consumers. Three children were injured as a result of their rugs catching fire last year.

Sales Tips for Insurance Agents

  • Offer to review vendor agreement
  • Check supply chain management process
  • Offer carrier or internal safety solutions
  • Don’t make these mistakes:

Don’t give a generic sales pitch

To avoid this, get “centered” before your next sales call. During your conversation with the customer, focus your intent on the customer using words, gestures, tonality and context. Don’t think about what you’re going to say next. Listen, then respond, then ask another question.

Do you know business basics?

Learn how to read a financial statement or calculate a ROI.

Follow through

It’s all a matter of organization. Whenever you close a deal, spend the extra time to schedule your follow-up appointments.  At the same time, schedule time so that you’re 100% sure that you make it to ALL your calls promptly.