Insuring for Product Recall

There are approximately 300 product recalls issued by the Australian Competition and Consumer Commission each year. Recalled products included motor vehicles and Christmas decorations but the bulk of recalls (about a third) were food recalls.

If you import products from overseas then you may be deemed the manufacturer under Australian law. This makes you responsible to follow the laws and regulations in regards to product recall.

Product Recall insurance can cover:

• Fees that you must pay a retailer to remove a product from the shelf
• Advertising fees to alert the public of the recall
• Replacement of item and loss of profit
• Safe disposal of the item

Tempo Tips

• Food is the most common product recall. Mislabeling and undeclared allergens is the most frequent cause of a recall. Peanuts alone are responsible for 15 percent of recalls.
• Product Extortion cover is available as an additional cover.