No matter how much money companies invest in research and development, operational oversight and product testing, mistakes can happen and unsafe products can be released to the public. Businesses often have to issue costly product recalls to ensure public safety and brand preservation. Obtaining Product Recall Coverage is an important first step in ensuring that the expenses associated with a product recall don’t end up destroying them causing critical harm to the business.   Every year countless number of people become sick from contaminated food putting thousands of people in the hospital.   There are over 1M restaurants in the US alone, foodborne illness can  have a huge impact for people, communities and businesses.   While large restaurant chains may have their bases covered to navigate a staggering $1 billion loss, smaller restaurants may not have the capability to do so. For example, Mariscos San Juan, was a Mexican seafood restaurant in downtown San Jose, CA. It was alleged that one sick food worker infected at least 80 people, hospitalizing many with an easily transmitted bacteria called Shigella. While the costs of this outbreak are unknown, that restaurant is now closed.   Restaurant owners often believe that General Liability (GL) insurance will cover incidents involving foodborne illnesses but in most cases it does not. Less than 3% of restaurants purchase Product Recall Insurance to cover contamination.   From what I have seen the cost of slip and fall accidents covered by a GL policy pale in comparison to the hardship of a family-owned restaurant can experience by not having the right coverage.   An average of 4,712 products are recalled by federal agencies each year. While recall costs are minimal, it is the contamination and business interruption coverage that is most important.   Product Recall Insurance provides first party expense incurred by the restaurant. This should not be confused with Product Liability Insurance - that covers third party losses.   To trigger a Product Recall policy one of these eight things may occur:

• Foodborne illness
• Supplier contamination
• Public health authority announcement
• Malicious tampering
• Adverse publicity
• Workplace violence
• Product extortion
• Disease outbreak

  Most restaurant owners say that “making people sick and a decrease in patronage of their restaurant” is what keeps them up at night.   Let us help you with the right insurance.   Keeping you protected,   Rick   All Access Insurance in Littleton, CO,  who represents multiple insurance companies as a “Broker” and provides products for auto, home,  commercial, workers compensation, and much more!   Call us today for a free quote at (303) 932-1700