At the heart of every successful business lies an understanding and appreciation of risk management. In a world where consumer safety and satisfaction are paramount, no business is immune to unforeseen events that can harm its reputation or financial standing. One such significant risk comes in the form of product recalls. This is where the vital protection offered by Kelly Insurance Group comes into play, making it your ideal choice for comprehensive product recall insurance.

*Call or email us, we are happy to discuss more details about coverage specifics.  Always consult your policy/quote for a full view of your coverage details.  




Product recall liability insurance is not typically included in general business insurance policies. Therefore, companies—especially those in the food industry or sectors where safety regulations are strict—need specific recall insurance to cover recall-related expenses. A standout offering in this area is the product recall expense coverage by Kelly Insurance Group. It ensures that the potentially ruinous costs of a product recall—be it from a food recall or other product categories—are well handled, helping businesses stay afloat in challenging times.


Navigating the world of commerce today requires more than just a groundbreaking product or service—it demands a vigilant eye on potential risks and proactive steps to mitigate them. One of the most significant risks a business can face is a product recall, an event that can occur unexpectedly and bear severe financial consequences. Product Recall Insurance from the Kelly Insurance Group has emerged as an indispensable protective measure for businesses, particularly those involved in sectors like food, consumer goods, automotive, pharmaceutical, and children’s products.

*Call or email us, we are happy to discuss more details about coverage specifics.  Always consult your policy/quote for a full view of your coverage details.  

Food and beverage manufacturers, pharmaceutical companies, automotive manufacturers, and toy companies are prime examples of businesses that can benefit from this coverage. For instance, imagine a food production company unknowingly distributing products contaminated with a harmful bacteria. Once detected, the company must swiftly recall all affected products, bearing expenses like customer notifications, product returns, and disposal. Here, food product recall insurance from Kelly Insurance Group can step in, absorbing these costs and mitigating the financial stress on the business.
Standard business insurance policies typically don’t extend to cover recall-related expenses. This leaves a void that Kelly Insurance Group’s product recall insurance fills effectively. Their comprehensive product recall insurance coverage cushions your business from potentially ruinous costs of a recall. It’s a safety net that allows businesses to maintain operational continuity during challenging times.

Product recall insurance cost varies depending on factors like business type, product nature, and production volume. However, any business that creates or distributes a product that could potentially be recalled should view this as a vital investment. The costs of a recall can be crippling, ranging into millions, depending on the product’s nature and scale of distribution. Comparatively, the cost of procuring product recall insurance is significantly lower and manageable, making it a wise investment.

Recalls can be incredibly costly. According to a joint study by the Food Marketing Institute and the Grocery Manufacturers Association in the US, the average cost of a recall for food companies is $10 million in direct costs alone. This doesn’t include indirect costs such as damage to brand reputation, loss of consumer trust, and lost sales, which can further multiply the cost.

Product recall insurance is a crucial safety net for any business that manufactures or distributes goods. It provides a broad scope of coverage for scenarios ranging from product contamination to product withdrawal expenses. The potential financial burden of a product recall can be debilitating for any business. Still, with Kelly Insurance Group, you get a partner who helps you weather the storm and maintain business continuity, making their product recall insurance not just an option, but a necessity.
Product recalls can often lead to liability claims. In the automotive sector, for instance, a study by the National Highway Traffic Safety Administration (NHTSA) in the US reported that recalls were responsible for approximately $3 billion in claims in a single year.


Product recall insurance is a specialized policy that shields companies from the substantial costs associated with withdrawing an unsafe or faulty product from the market. Though often confused with product liability insurance, recall insurance serves a distinct purpose. While liability insurance focuses on protecting a business from claims arising due to injuries or damages caused by their products, recall insurance is centered on the financial implications and expenses related to the recall process itself.



  1. Contaminated Food Products: A food processing company found traces of listeria, a harmful bacteria, in their products during a routine quality check. An immediate recall was necessary to prevent consumers from potentially ingesting the contaminated products. The company had to halt production, inform retailers and consumers, arrange for the return of the products, and properly dispose of the contaminated items. The entire recall process, including the potential loss of revenue and brand reputation damage, was costly. Fortunately, the company had food product recall insurance coverage from Kelly Insurance Group, which helped absorb these expenses, preventing a catastrophic financial impact.

  2. Automotive Defect: An automobile manufacturing company discovered a defect in one of its car models that could potentially cause accidents. As consumer safety was paramount, the company initiated a product recall, necessitating consumer notifications, part replacements, and additional labor costs. Given the number of affected vehicles, the recall expenses were substantial. Thanks to their product recall insurance coverage from Kelly Insurance Group, these unexpected costs were managed efficiently, and the company was able to navigate through the recall with minimum financial disruption.

  3. Pharmaceutical Recall: A pharmaceutical company had to recall one of its drugs due to an identified adverse side effect not previously documented. The process involved contacting pharmacies, hospitals, and patients, arranging for the return and proper disposal of the drug, and managing potential litigation costs associated with the side effect. The recall costs quickly added up, but the company’s product recall insurance from Kelly Insurance Group kicked in, mitigating the financial burden and ensuring the company could focus on resolving the issue and maintaining its operations.

  4. Toy Manufacturing: A toy company discovered a choking hazard in one of its products designed for toddlers. The firm had to recall the toy, contact all their retailers worldwide, and deal with the associated logistics, not to mention the potential lawsuits from affected families. Their product recall insurance from Kelly Insurance Group helped cover these costs, allowing the company to manage the crisis more effectively without severe financial strain.

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