How Brokers and Insurers can win more Product Liability & Recall Insurance tenders
Torino, the 16th of October 2025
The Opportunity Behind Product Liability
Across Europe, SMEs remain the most underinsured segment when it comes to product liability – even though they design, produce, or assemble goods that can trigger claims or recalls.
With the EU Product Liability Directive (Directive (EU) 2024/2853) expanding definitions to include software, AI systems, and connected devices, risks are multiplying. Member states will apply the new rules by 2026, meaning many companies still don’t understand their new responsibilities.
For insurers and brokers, this is a clear sales opportunity: SMEs need guidance, not just coverage. The winners will be those who educate, simplify, and personalize risk solutions.
Why Many SMEs Still Resist Liability Insurance
Despite the growing risks, most SMEs still lack dedicated product liability coverage.
- Perception of low risk: Many believe their products are “too small” or “too safe” to cause damage.
- False sense of coverage: They assume their general liability policy already includes product risks — which it doesn’t.
- Price sensitivity: SMEs often prioritize short-term costs over long-term protection.
- Complexity: The process of obtaining insurance often feels like a barrier – providing extensive information and documentation can be difficult for SMEs, making the experience overwhelming and discouraging.
As a result, most SMEs postpone the purchase until they experience an incident, when it’s already too late.
As seen in our article on product recalls in the automotive industry, many companies underestimate liability simply because they haven’t faced recent incidents — until one recall proves how costly that assumption can be.
How Insurers and Brokers Can Increase Sales
To sell more product liability insurance, insurers must rethink their approach — from selling protection to proving value.
Tell Stories, Not Clauses
Move beyond abstract risk. Share practical cases – a mislabeled product, a software update causing malfunction, or a supplier defect – to show how small oversights can escalate.
For example, the Ferrero Kinder contamination in 2022 showed how a hygiene lapse can trigger global recalls in the food industry. Similarly, in the cyber insurance space, the JLR cyberattack demonstrates how a digital vulnerability can halt production lines for days. (the guardian)
These stories make risk tangible, helping clients see that liability isn’t theoretical but part of real business continuity.
Segment and Personalize Offers
SMEs face very different risks, and understanding their business is what truly sets strong brokers and insurers apart.
Show that you understand their business, not just their policy. Industry-specific language builds credibility and trust.
For example, when advising a food manufacturer, refer to issues like Listeria contamination or supply-chain traceability and focus on how their production and recall processes affect coverage needs.
If working with an automotive supplier, mention lessons from the Takata airbag recall, and connect it to their own component sourcing, testing, and quality controls
Simplify the Experience
Insurance feels complex; your process shouldn’t.
Insurance often feels complex because assessing a company’s risk involves collecting detailed information — from suppliers to quality controls — mostly through manual forms and questions.
This process can be slow and frustrating for SMEs.
By simplifying the entire experience and automating data collection, brokers and insurers can make the process faster, clearer, and more transparent for everyone involved.
Share Digital Tools to Build Transparency
Simplifying the process starts with automation — yet many SMEs lack the systems to do it themselves. Brokers and insurers can close this gap by offering digital tools that manage quality systems more efficiently.
These platforms centralize supplier data, track issues, and record preventive actions, turning daily operations into auditable insights that support clearer risk evaluation and fairer pricing.
Build Long-Term Relationships
Strengthen client relationships by offering bundles or integrated solutions — combining product liability coverage with complementary options like recall insurance or quality management system that help clients manage quality and risk.
Stay involved after the policy is signed by sharing updates, reviewing performance, and helping clients improve risk control. This holistic approach simplifies coverage, adds measurable value, and builds trust over time.
The Rcalls Advantage: Data That Makes Selling Easier
Rcalls is a cloud-based quality management system that can be bundled with insurance offerings to bring transparency and measurable value to SMEs.
It centralizes quality data, tracks non-conformities, and uses AI-driven analytics and component-level risk scoring to turn daily operations into auditable insights.
By making quality performance visible, Rcalls helps brokers and insurers build trust, support fair pricing, and strengthen long-term client relationships.
