Product Recall Insurance in Saskatchewan

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Product Recall Insurance in Saskatchewan: FAQs

How much does product recall insurance cost in Saskatchewan?

The cost of product recall insurance in Saskatchewan depends on your specific details, coverage, and deductible. The best way to know is a free quote — as an independent broker we compare 17 insurers to find your lowest price.

How do I get product recall insurance in Saskatchewan?

Request a quote online in minutes or call Insurabiz at 613-355-3130. We'll compare our full panel of insurers to find the right product recall insurance for you in Saskatchewan.

Why use a broker for product recall insurance in Saskatchewan?

A broker works for you, not one insurer. We shop the whole market at once to find the best product recall insurance coverage and price in Saskatchewan — with local advice and an advocate at claim time.

What does product recall insurance cover?

It covers the cost of recalling a defective or contaminated product: notification, retrieval, shipping, storage, destruction, extra staff and warehouse space. Third-party cover pays your customers' recall costs when your product or ingredient is in theirs. Depending on the wording, it can add replacement product, lost profit, brand rehabilitation and crisis consultants.

Doesn't my general liability policy cover a recall?

No. Standard Canadian CGL wording excludes the cost of withdrawing, recalling, inspecting, repairing, replacing or disposing of your product, your work or property that contains it, when it is recalled because of a known or suspected defect. CGL pays injury and damage claims from others. Recall costs need a separate recall policy.

What is the difference between first-party and third-party recall cover?

First-party cover pays your own costs of carrying out a recall. Third-party cover pays claims by your customers, such as a manufacturer or retailer, for their costs of recalling products that contain or include yours. Ingredient and component suppliers usually need third-party cover most, because one defect can cause many downstream recalls.

Are voluntary recalls covered, or only government-ordered ones?

It depends on the wording. Some policies cover recalls the business decides to carry out when a product is likely to cause injury, while others require a regulator's order or request. A trigger limited to government orders can leave recalls you start yourself uninsured, so check this before you buy.

What do Canadian food businesses have to do in a recall?

Under the Safe Food for Canadians Regulations, an operator must keep a written recall procedure with a named contact, run a recall simulation at least every 12 months, and notify the Minister immediately on deciding food should be recalled for a health risk. It must then implement the procedure and document its effectiveness.

What are the recall duties for consumer products?

Under the Canada Consumer Product Safety Act, businesses that manufacture, import or sell a consumer product commercially must give Health Canada incident information within two days of becoming aware of it, with a written report within 10 days. The Minister can order a recall, and selling recalled products is prohibited.

My grocery supply agreement requires recall insurance. Is that common?

Supply agreements with retailers and grocers can require recall cover, make the supplier pay the retailer's recall costs, or both. Read the clause carefully. If the agreement makes you responsible for the retailer's costs, you need third-party recall cover, and the limit should reflect how much of your product the retailer holds.

How much recall coverage do I need?

Estimate a realistic worst case: the number of units in the supply chain at once, the cost to retrieve and destroy each unit, margin lost on the recalled product, and your customers' recall costs if your ingredient or component is in their goods. Contract requirements set a floor, but your own numbers should set the limit.

Does recall insurance cover malicious tampering?

Many contamination policies for food and beverage businesses include malicious tampering, meaning deliberate contamination by an employee or an outsider. Some extend to extortion threats. It is not automatic in every recall wording, so if your products could be targeted, ask for it by name and check the sublimit.

How is product recall insurance priced?

Specialist underwriters price each risk individually. They weigh the product and its hazards, how many units are in distribution, where they are sold, your food safety and quality controls, traceability, recall simulations, and history. The limit, retention, sublimits and whether third-party and lost profit cover are included also move the price.