| Recall & contamination throughput: Driver | Trend | Range |
|---|---|---|
| Long-standing relationship and good loss experience |
|
Flat to +5% |
| Marginal to Poor Loss Experience |
|
+10% to +25% |
With tariff-driven cost inflation and multi-hundred-million-dollar loss activity, recall programs must be stress-tested for adequacy. Limit reviews, benchmarking and contingency planning are essential in 2026.
| Product and Source | Overview |
|---|---|
| Electric Pressure Washers (capacitor explosions causing injuries) | ~780,000 units recalled in U.S. and Canada; 135 overheating incidents, including 41 explosions with 32 reported injuries. |
| Vehicle Recalls | Record 7 million vehicles recalled in 2025 to date, triggering a $600 million special charge and $2 billion in warranty expense (4% of sales). |
| Headlight Recall | 17,260 electric vehicles recalled due to headlight failure in cold weather; no injuries reported. |
| Food & Drug Recalls (FDA) | Nearly 20 items, including ice cream and frozen shrimp, recalled for bacterial contamination (e.g., Listeria, E. coli). |
| Classic Potato Chips (undeclared milk allergen) | 6,000+ bags voluntarily recalled and elevated to FDA Class I risk. |
| Pancake Mix | Limited recall across 11 states due to undeclared milk; no allergic reactions reported. |
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
