CFC, the specialist insurance provider, pioneer in emerging risk and market leader in cyber, has launched a new quality defect endorsement that significantly broadens the scope of its product recall cover.
The endorsement offers the broadest version of quality defect cover available worldwide, responding to modern manufacturing risks where quality failures can be just as damaging as safety incidents.
Traditionally, product recall policies have required evidence of bodily injury or third party property damage before a claim can be made. CFC’s new endorsement removes that requirement and extends cover to manufacturing errors that result in defects in taste, smell, appearance or finish. These types of defects frequently lead to costly recalls but have historically fallen outside the protection offered by standard recall insurance.
With the introduction of this endorsement, CFC is filling a long standing coverage gap by giving clients access to a broader category of valid claims and providing more relevant protection for modern manufacturing and supply chain risks.
By reducing complexity and the number of external parties required to assess a loss, the endorsement also enables faster and more efficient claims handling when quality issues arise.
Commenting on the launch, Michael Lilley, Product Recall Team Leader at CFC, said:
“Quality issues are becoming a much bigger driver of product recalls, and clients have told us for years how challenging the traditional injury based triggers can be."
With this endorsement, we’re giving clients broader, more practical protection that reflects how modern manufacturing really works. By covering defects like taste, smell or appearance without the need to prove bodily injury or property damage, we’re helping businesses protect their balance sheets and keep moving when something goes wrong. Michael Lilley, Product Recall Team Leader
Lilley continued: “Just as importantly, we’ve built this to simplify the claims process so clients can get clarity and payment far more quickly than before. It’s another step in making recall insurance more relevant, more responsive and better aligned to the realities our clients face today.”
The endorsement is available across a wide range of sectors, including food and beverage, nutraceuticals and cosmetic products, and can be tailored to reflect individual risk profiles.
