What Is Product Recall Insurance?

Product recall insurance means that due to the defects of the product, even if it is used correctly, it may still cause damage to consumers' personal and property safety, so that the product is recycled and the related costs are collected.

Product Recall Insurance

Industrial product recall insurance is designed to compensate the insured for product defects that cause or will cause physical injury or

The following frequently asked questions and answers:

1. Under what circumstances will a product be recalled?

Answer: In general, as long as the defect in the product itself has caused or is likely to cause a consumer injury or property damage, the product must be recalled. Usually, consumers find such defects in the process of using products, such as electrical leakage, batteries exploding and catching fire, etc. These defects may have caused consumers' personal injury or property damage, or they may not An accident occurs; after receiving a related accident report, a product production or sales company generally recalls the problem product in order to avoid more accidents and protect its own goodwill. European and American countries have established perfect product recall systems. Once consumers find problematic products, relevant government departments will require manufacturers or distributors to recall these problematic products in accordance with the law.

2. What is the process of product recall?

a) Product manufacturers or distributors receive consumer reports of problem product accidents;

b) The manufacturer or distributor analyzes the accident to determine whether it is caused by a defect in the product;

c) If it is judged that the product is defective, take corresponding measures according to the laws of the place where the product is sold, such as reporting to the relevant government department, preparing to implement a recall, etc .;

d) Even if the manufacturers and distributors judge that the products are not defective, if the government department requires that their products be recalled, the manufacturers and distributors must implement them;

e) Manufacturers and distributors of problematic products publish recall information such as product name, model, batch, possible problems, return and exchange methods of the problematic products in public media;

f) Take corresponding measures for the recalled problem products: on-site repairs, on-site destruction, and return to the place of production for reprocessing.

3. What is the difference between product recall and return?

A: Product recalls are product manufacturers and distributors who recycle products due to defects that may cause personal injury or property damage to consumers. Returns are due to the fact that the products provided by the manufacturer cannot meet certain requirements in the purchase contract (especially (In terms of quality), the buyer refused to accept the goods and returned the goods to the supplier. The biggest difference between the two is whether the product has defects that could cause consumer injury or property damage.

4. What is a product recall plan?

A product recall plan is a prior arrangement made by a product manufacturing or operating company for a possible product recall event. It mainly consists of the following persons: the person responsible for the product recall, the reporting system for product defects, the product recall information release system, and issues. Product processing methods, problematic product logistics solutions, etc.

5. How to apply for product recall insurance?

Product recall insurance is divided into export product recall insurance and domestic product recall insurance depending on where the product is sold. Export product recall insurance is difficult to obtain due to the high risk of product recall in Europe and the United States. At present, there is basically no insurance company in the domestic market that can provide export product recall insurance alone. Generally, it is an additional clause of export product liability insurance. Export companies must consider providing export product liability insurance before insurance companies may consider providing insurance. Product recall insurance; many insurance companies will also require insured companies to have a complete recall plan.