What is “rip and tear” cover?

  • If the harmful nature of the Insured’s Product is discovered after it has been sold, it may be necessary to recover the Product from the customer. Usually this can be covered by the Products Recall extension under the General Liability policy.
  • A problem can arise when the customer has consumed the Insured’s Product or has incorporated it into some other product. In that case it might be necessary to destroy property in order to recover the Insured’s Product. This is known as “rip and tear”.
  • Consider an example where the Insured provides bricks which a customer uses to build a wall.
    • If the wall falls down and damages the neighbour’s property, this would be a Products Liability claim.
    • However, suppose the Insured discovers the defect in the bricks before the wall falls down. The problem with trying to recall the Insured’s Product is that the bricks cannot be recovered without destroying the wall.
    • Recovering these bricks falls outside of Product Recall cover and is known as “rip and tear” cover.
  • Rip and tear cover is very seldom covered by underwriters since it is considered to be a trade risk.
General Liability