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PRODUCT RECALLS

Product recalls can cause financial and reputational harm to businesses and disrupt the lives of consumers who own a recalled product.

Product recalls can play a critical role in quality assurance and consumer safety. That’s why Selective strives to keep our business and personal customers informed about recalls that could impact their safety and security.

Be proactive. Learn more about the risks of product recalls. Ask your local independent agent to help you protect your business against the risks related to a product recall.

HOW PRODUCT RECALLS IMPACT BUSINESSES

It’s not just manufacturers and big-name brands at risk of a product recall. For example, a food wholesaler or distributor that shipped lettuce contaminated with E. coli may face significant recall expenses, reputational damage, and other liabilities. A power tool manufacturer or importer may be required to reimburse retailers for costs related to the recall of faulty or harmful products.

No matter how thorough your processes are, the risk of a product recall remains. That’s why Selective offers product recall expense coverage, which includes flexible coverage options and limits applicable to various product recall related costs.

HOW PRODUCT RECALLS CAN IMPACT CONSUMERS

You trust companies to ensure the quality of the cars you drive, the food you buy at the grocery store, and the appliances in your home. Using a recalled product—knowingly or unknowingly—can be dangerous. So while it can be frustrating if a product you own is recalled, remember that it may be to protect your safety or prevent loss or damage to your property.

WHY YOU SHOULD REGULARLY CHECK FOR VEHICLE SAFETY RECALLS

With an estimated 50 million vehicles under active recall in the United States, many cars and trucks need repairs. You should check for recalls on your vehicle regularly and promptly address recalls because unrepaired vehicles can increase risks on the road for you, your passengers, and other drivers.

We regularly check vehicle VINs for recalls for our personal auto or commercial auto insurance customers and make efforts to notify our policyholders of recall notices and appropriate actions.

FREQUENTLY ASKED QUESTIONS ABOUT PRODUCT SAFETY RECALLS

What causes a product recall?

Product recalls can arise from, for example, safety concerns, quality defects, regulatory non-compliance, contamination or adulteration, mislabeled or incorrect packaging, reports of adverse effects, or supplier or manufacturing issues. Some companies may initiate voluntary recalls due to potential concerns or to help ensure customer satisfaction and safety.

How does the product recall process work?

While every recall is different, they typically follow similar steps:
First, a company or regulatory authority identifies a problem with a product, such as a safety hazard or defect. Next, they investigate the cause, extent, and potential risks. Finally, a recall announcement informs consumers about the issue and provides instructions for repairing or replacing the product.

How long does a product recall last?

The duration of a product recall varies depending on the type of product recalled, the severity of the issue, area(s) of distribution, regulatory requirements, and required actions by both the seller or manufacturer and end consumers. Small or localized product recalls may take weeks, while large-scale, regional, national, or international ones may take months or longer.

Does Your Business Insurance Cover Product Recall?

Standard commercial general liability coverage typically excludes product recall expenses. By working with your independent agent to obtain insurance protection tailored to your needs, you can mitigate the impact of some of those recall risks.

FIND PRODUCT RECALL INFORMATION

Not sure if a product you purchased has been recalled or what to do if you receive a recall notice? These government-approved recall resources can help.

FIND A LOCAL INDEPENDENT AGENT