Introducing our new dedicated Pharmaceutical Product Recall insurance for Asia Pacific

Specialist risk deserves specialist wording

Recall risk in the pharmaceutical sector carries particularly severe consequences because medicines directly impact patient safety and are subject to rigorous regulatory oversight. For this reason, product recalls represent one of the most significant operational and financial exposures faced by the industry.

While the direct costs associated with a recall — such as transportation, inspection, and storage — can be considerable, they frequently account for only a fraction of the total financial impact. In many cases, business interruption and product replacement costs constitute the largest area of exposure, yet these are not typically covered under recall extensions within General Liability or Product Liability policies.

Pharmaceutical recall cover, redefined

Liberty’s pharmaceutical recall policy aligns with industry terminology and follows the FDA, TGA, EMA and MHRA recall classifications (Class I and Class II) to determine the scope of cover. In contrast, standard recall wordings often frame coverage around “accidental contamination”, which may be narrower or less relevant in a pharmaceutical context.

Designed to address the gaps found in standard recall policies, Liberty’s pharmaceutical recall policy eliminates the efficacy and carcinogenic exclusions and covers conditions such as requirements for accidental contamination or an injury to occur within 365 days of use or consumption — conditions that are not always appropriate or applicable to pharmaceutical risks. 

The policy enables businesses to manage recall exposure across multiple jurisdictions and regional supply chains while facilitating faster and more structured incident responses that help protect patients, brand integrity and preserve reputations.

For more information about Liberty Pharmaceutical Product Recall insurance, or to contact an underwriter, please visit our Crisis Management page.