--- title: "Product recall insurance | CARMA" description: "Product recall insurance and product liability insurance are not interchangeable. Recall review should connect product traceability, decision authority,..." canonical: "https://www.carma365.com/cannabis-insurance/product-recall/" --- Insurance by coverage # Product recall insurance for cannabis businesses Product recall insurance and product liability insurance are not interchangeable. Recall review should connect product traceability, decision authority, customer communication, and the costs the business could face when a product must be removed from the market. Prepared by [CARMA Insurance](/about/) Reading time 1 min read Content updated August 12, 2026 Carma Insurance LLC [Business entity NPN 21134854](/licensing-disclosures/) Related CARMA expertise [Zimraan Shikari, Director, Underwriting](/experts/zimraan-shikari/) [How we publish guidance](/editorial-standards/) [Discuss recall readiness](https://broker-forms-sandbox.pages.dev/application)[Start QuickQuote](https://broker-forms-sandbox.pages.dev/quoter-v2/)[Speak with the CARMA team](/contact/) Coverage and availability depend on the account, state, insurer and underwriting review. General information and nonbinding indications do not bind insurance; the applicable binder, policy, endorsements and law govern coverage. Important insurance information This guide is general information and does not determine coverage or legal requirements for your business. Policy terms, exclusions, conditions and available options vary. Contact the appropriate licensed insurance representative about your account, request confirmation of any coverage placed, and review the applicable insurance documents. An application, inquiry or nonbinding indication does not by itself bind or change insurance. Account brief ## What to clarify before discussing this account **Clarify** Can the business trace each lot from ingredients through every customer or distributor? **Confirm** Who decides to withdraw or recall a product, and which written plan governs the response? **Prepare** Product, supplier, manufacturing, testing, lot, and distribution information [Discuss recall readiness](https://broker-forms-sandbox.pages.dev/application) On this page 5 sections On this page [Test whether the business can trace affected products](#test-whether-the-business-can-trace-affected-products)[Assign recall decisions and expenses](#assign-recall-decisions-and-expenses)[State questions](#state-questions)[Underwriting focus](#underwriting-focus)[What to send CARMA](#what-to-send) ## Test whether the business can trace affected products Describe lot and batch records, ingredients, suppliers, manufacturing, testing, release, distribution, customer records, and complaint handling. Explain how quickly the business can identify where affected units went. ## Assign recall decisions and expenses Identify who can initiate a recall, who communicates with customers and authorities, and who pays under manufacturing or distribution contracts. Consider notification, shipping, storage, disposal, replacement, and other requested cost categories without assuming they are covered. ## Recall questions to resolve - Can the business trace each lot from ingredients through every customer or distributor? - Who decides to withdraw or recall a product, and which written plan governs the response? - How do contracts divide notification, removal, disposal, replacement, and indemnity responsibilities? ## What CARMA wants the submission to explain These details help the team understand the account and identify the next useful question. They do not establish eligibility or available terms. - Describe the event that would trigger a recall decision and who has authority to make that decision. - Show how lots, ingredients, customers, distribution partners, notices, disposal, and replacement are tracked. - Reconcile recall plans with product testing, complaint records, contracts, values, and product-liability coverage. ## Records for a product recall review - Product, supplier, manufacturing, testing, lot, and distribution information - Recall plan, complaint procedures, traceability records, and prior recall or withdrawal history - Manufacturing, white-label, vendor, and distribution contracts that assign recall duties ## Can CARMA consider this account? CARMA confirms program fit, licensing, state availability, coverage options, and market interest for each account. This guide does not promise eligibility, terms, pricing, or placement. Important insurance and legal information CARMA's website provides general information only. It is not insurance, legal, tax, regulatory, underwriting, safety, risk-management, or claims advice. Nothing on this site is a quote, binder, policy, coverage determination, legal opinion, or promise of eligibility, availability, pricing, terms, limits, or placement. Only an issued policy and its endorsements can provide coverage, and their actual terms, conditions, limitations, and exclusions control. Sending information, following a link, or speaking with CARMA does not bind coverage, change a policy, or create authority to act for an insurer unless an authorized party confirms that authority in writing. Do not rely on this website to report a claim, request a policy change, satisfy a notice requirement, or meet a deadline. Use the instructions in the applicable policy or written communication. Laws, licensing, appetite, carrier participation, and external sources can change, so confirm time-sensitive matters with CARMA, the controlling source, and qualified advisers. [Read the complete website disclaimer](/legal-disclaimer/). [Back to top](#main-content) Continue researching ## Put this subject in the context of the full account. Account-specific review ## Bring CARMA the account. Retail agents, wholesale brokers, and business owners can start with the details they have. [Discuss recall readiness](https://broker-forms-sandbox.pages.dev/application)[Start a business insurance conversation](/contact/)