Which excess liability coverage could help pay for losses associated with a product recall?

A Commercial Umbrella Policy is designed to provide additional coverage beyond the limits of other liability policies, which can be crucial in the event of significant claims arising from many potential sources, including product recalls. Such policies typically cover liability claims that exceed the limits of the underlying policies, such as general liability, auto liability, or employers' liability. Therefore, when a company faces a substantial financial loss due to a product recall—whether it's covering the cost of withdrawal, notification, or other expenses—the Commercial Umbrella Policy can act as an additional layer of protection.

Other options do not specifically address coverage for losses stemming from product recalls. A Workers' Compensation Policy specifically covers employee-related injuries or illnesses, while a General Liability Policy may offer limited coverage related to products, it typically has specific exclusions that might not handle large-scale recalls effectively. An Excess Liability Policy, similar to the umbrella, acts as an additional layer above existing coverages but is generally less comprehensive in the scope of coverage. Consequently, the Commercial Umbrella Policy is the most suitable choice for covering significant liability arising from product recalls.