CFC expands product recall coverage

CFC has introduced a new quality defect endorsement for its product recall insurance, expanding coverage to include non-injury-related defects.

The endorsement removes the traditional requirement for bodily injury or third party property damage, allowing claims for defects tied to taste, smell, appearance, or finish. These issues, particularly relevant in sectors like food, nutraceuticals, and cosmetics, have historically fallen outside standard recall policies despite driving costly recalls.

The update broadens the scope of valid claims and reflects a shift in how manufacturers experience risk, where quality failures can trigger significant financial and reputational damage without causing physical harm.

CFC also said the endorsement is designed to streamline claims handling by reducing reliance on external assessments, enabling faster resolution when defects arise.

Coverage is available across multiple industries and can be tailored based on individual risk profiles.