Product recall coverage shields companies from financial losses suffered as a result of a recall, such as:
- The cost of physically removing the product from retailer shelves;
- Storing or disposing of the product; and
- In some cases, the cost of rebuilding the company's reputation following a recall.
Menu Foods' petfood recall in 2007, the largest in history, reportedly cost US$50 million. This insurance can sometimes be added to another policy to fill the gap where such claims are excluded. Be aware that most insurance policies allow for coverage of either the purchase price of the affected pet or the veterinary expenses involvedwhichever is lowest.