It seems that product recalls are always in the news.
In late September, for instance, Tyson Foods recalled more than 130,000 pounds of chicken nuggets because of possible contamination with hard plastic. Vehicles and their parts, as well as child safety products, are also frequent recall targets.
Many manufacturers fail to realize that their commercial general liability (CGL) insurance policies typically will not cover any of the costs associated with a product recall. Although a particular company's insurance coverage depends on the language in its individual policies, the standard unendorsed CGL policy specifically excludes many costs and expenses related to the recall of defective products.
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