It is known as product recovery cost insurance, it covers the costs of recovery, inspection, repair, etc. of the product when there is or is a risk of bodily injury or property damage to a 3rd party who is a consumer due to a defect in a product manufactured or sold by the manufacturer. Therefore, this policy is an insurance that supports the due implementation of the product recall work and the stabilization of the management of the enterprise.

a. Recall Costs

b. Damage realistically suffered by the manufacturer of the finished product due to recovery, etc.

- Newspapers, magazines, prints, radio advertisements, postal costs, etc.

- Transportation costs directly incurred in the recall

- Disposal costs

- Hire additional temporary personnel

- Labor costs associated with overtime work of full-time employees

- Additional warehouse lease costs leased for recall

c. Costs of Defense

- Costs of legal disputes

- Deterioration of the quality of the product, decay, deformation of the chemical structure

- Customer preferences, fluctuations in economic conditions

- Changes in product safety laws and regulations or government standards Intentional Violation of Laws

- Fines, penalties imposed by government agencies, etc.

- Lost Profit and Recovery Costs