Product Recall Insurance

Although many companies recognize their exposures involving product recall and the insurance industry does offer various products, a further review shows that oftentimes companies elect to retain product recall exposures. Why? Because product recall coverage often fails to meet the needs of prospective buyers. These unmet needs can be identified in 4 areas; 

1. The premium cost to coverage limit ratio is too low.
2. Retentions offered when compared to premium spending are often not compelling enough to transfer risk.
3. Vague coverage triggers
4. Insurer capacity (limits) that are often needed are not available for true catastrophic exposure.

Given some of the above challenges that companies face when pursuing product recall risk transfer policies, it is clear why many companies often retain the risk or improperly ensure the exposure. This is where UIC Inc may be able to help. UIC professional advice has successfully instituted best-in-class product recall protocols and negotiated on behalf of their clients robust and cost-effective risk transfer policies. UIC’s proprietary product recall specifications and intellectual capital has successfully fulfilled the strategic goals of its’ clients for the exposure by;

• By effectively presenting clients’ exposure information to brokers and insurers in the most comprehensive and favorable as well as driving costs and deductibles down.

• Provide manuscript verbiage to insurers and have them adopt the same, providing a clear trigger for coverage when an incident occurs falling within agreed parameters.

• Identification of capacity to over $100 million in limits for exposure that previously may have been limited to less than $10 million in coverage.