Recall insurance gaining interest amid Toyota revelations

posted by Lawrence Shipman

The recent string of food and vehicle recalls has led to an increase in consumers' interest in insurance plans that cover products that are affected by recalls or manufacturer error.

According to a new report by Lockton's Ian Harrison, titled Supply and Demand Growing for Product Recall Insurance, the insurance sector concerning recalls was said to be "resilient and stable" amid the current issues involving Toyota during the last two weeks.

"The interest by buyers in this insurance protection has steadily increased with the recent Toyota recalls sparking even more discussion," Harrison said. "We have seen a steady growth in both supply of insurance capacity and expertise in this area, so buyers have attractive options."

The report also found that an increasing number of insurance providers had added wording to their policies to cover product recalls and any costs that may be associated with it.

In the wake of the large number of recalls that consumers have been facing in recent weeks, Democratic New York Senator Chuck Schumer proposed legislation on Sunday to create a master list of all recalled products that would be continually updated online for consumer to see, the New York Post reported.