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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.

See this in your MSA

Map this clause against your sponsor MSA.

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Related clauses

Common questions about this clause

Questions about specialty

Recall Coverage - $1M - common questions

Does standard products cover recall costs?

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?

$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?

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.