For plastics manufacturers, product-related claims can be some of the most financially and reputationally damaging events a business can face. Understanding how product recall and public liability insurance work, and where gaps commonly arise, is critical.
Public liability explained
Public and product liability insurance protects a business if its products cause injury or property damage to third parties. This may include defects in plastic components, contamination issues or product failure.
However, public liability does not automatically cover the costs of recalling products from the market.
What product recall insurance covers
Product recall insurance is designed to cover the costs associated with removing unsafe or defective products from circulation. This can include:
- Customer notification
- Transport and disposal costs
- Replacement or repair expenses
- Crisis management and public relations support
For plastics manufacturers supplying components into larger products, recall costs can escalate quickly.
Common misconceptions
A frequent misconception is that public liability insurance will respond to recall costs. In some cases, it may not. Recall cover is typically a separate policy or extension and can be specifically arranged.
Another gap arises when policies exclude recalls triggered by regulatory action or contamination without injury.
Why plastics manufacturers need tailored cover
The recall risk profile of plastics manufacturers depends heavily on how products are used downstream. A specialist broker will assess end-use applications, customer contracts and supply chain exposure to structure appropriate cover.
This ensures that if a recall occurs, the policy responds as expected and provides meaningful financial support.
Get a plastics insurance quote
For a review of your insurance solution or a tailored quote for your business, contact us.