Product Liability vs. Product Recall Insurance: What’s the Difference?
Product liability covers third-party injury or damage claims; product-recall coverage may pay the business’s own withdrawal and response costs.
A single product event can raise two different insurance questions: a customer’s injury claim and your cost to retrieve or destroy stock. An illustrative CGL form excludes certain recall expenses.
Compare the CGL terms with recall coverage’s event trigger, expense categories, voluntary-recall conditions, waiting period, and sublimits. Ask whether the recall form covers first-party expenses, third-party demands, or both.
