A large industrial supplier approached us after experiencing a significant product failure that resulted in a costly claim they were forced to absorb themselves. Although they had an extensive insurance programme in place, Product Recall protection was something they had never previously purchased.
The client operates at scale, with an annual turnover in the hundreds of millions and longstanding relationships with major organisations across engineering, transportation, utilities, and manufacturing. Given the breadth of their operations and the complexity of their supply chain, a single defective component had the potential to cascade into substantial financial and reputational damage.
The need for specialist Product Recall cover became clear following an incident where a component supplied to a global engineering brand failed, resulting in a seven figure loss. This event highlighted a major exposure and raised internal questions about how the organisation could better protect itself in the future.
However, placing Product Recall insurance for a business with:
can be challenging. Market appetite for these types of risks is limited, and insurers can be cautious when previous claims of this magnitude are involved.
Over the course of 20 months multiple meetings and collaborative sessions were held involving various teams across broking, technical, and sector-specialist functions. Our objectives were twofold:
By working closely with the client’s leadership and risk management team, we were able to address concerns, explain policy nuances, and walk through detailed scenario analyses to demonstrate the practical value of the cover.
Given the client’s diverse product lines and loss history, securing market support required a specialist, technical approach. We engaged with insurers known for their depth of expertise in Recall risk, presenting a transparent and well-evidenced submission that demonstrated the client’s improved internal controls and commitment to risk mitigation.
Two leading markets were ultimately prepared to support the placement, contributing both technical insight and underwriting confidence. Their involvement was instrumental in validating the robustness of the solution we proposed.
After nearly 20 months of collaboration and market negotiation, the client elected to purchase Product Recall cover for the first time. This not only closes a critical gap in their risk portfolio but also positions them far more securely should a similar incident occur in the future.
The successful placement demonstrates the value of patient expertise, collaborative market engagement, and a technical approach to complex risks. It also reinforces the benefit of working with partners who understand both the client’s operational realities and the intricacies of specialist insurance markets.
This case highlights what sets Price Forbes apart: collaboration, creativity, and commitment to delivering value in complex scenarios.
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