Does General Liability Cover Product Recall?

The ISO CG 00 01 specimen specifically excludes damages for costs incurred by the insured or others to lose use of, withdraw, recall, inspect, repair, replace, adjust, remove, or dispose of the insured’s product, work, or impaired property. That exclusion means a CGL product-liability grant should not be treated as product recall insurance. A covered injury claim connected to a product is a different issue and still depends on the policy’s terms and exclusions.

Some insurers offer recall expense coverage or endorsements, but availability, triggers, covered expenses, waiting periods, and limits vary. If your business manufactures, imports, distributes, or sells products, ask for the recall form and compare its definition of a covered event, required reporting, crisis or consultant expenses, and whether voluntary recalls qualify. Review the underlying CGL products-completed operations limits separately so the two coverages are not confused.