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SpecialtyNegotiable

Recall Coverage — $1M

What this clause says

Product Recall Insurance with a limit of not less than $1,000,000 covering first-party recall expenses and third-party recall expense liability.

What this means in plain English

Coverage for the costs of pulling product back from market — your costs and the sponsor's costs.

What it means for a CDMO program

Recall coverage is highly variable. There is "expense only" (cheaper, covers logistics of pulling product), "contamination/impaired property" (broader), and full "product recall and contamination" specialty policies (most expensive, broadest). For a CDMO, $1M expense-only recall added to the CGL is the entry point. $5M+ standalone contamination coverage is a meaningful additional spend.

How this evaluates

The Decoder applies these rules in order; the first match wins.

  • recall › limit is at least $1M → Compliant: Recall coverage at $1M+ is in place.
  • recall › limit is not set → Gap: No recall coverage indicated.

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Related clauses

Questions about specialty

Recall Coverage — $1M — common questions

Does standard products cover recall costs?

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No — products covers third-party bodily injury and property damage from the product. Recall is a first-party expense (your costs to recall, retrieve, dispose) and requires a separate extension.

How much recall coverage do CDMOs typically carry?

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$1M-$5M is the most common range for pharma CDMOs. The right limit depends on production volume, distribution scope, and sponsor MSA requirements.

Does recall coverage include the loss of the product itself?

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Sometimes (depending on form). "Insured product" recall pays the cost of replacing the recalled inventory. Pure third-party recall does not. Read the form carefully.