In today’s global marketplace, the risk of product recall has never been greater.
Increasing regulatory scrutiny, pressured margins, complex supply chains and changing technology can lead to an increase in the occurrence and severity of product recalls.
Some product defect risk can be mitigated using technology during production, but errors can affect even the most prestigious, global product manufacturers and brands.
Crisis planning and high-standard quality controls are key to mitigating the risk of product recall.
Insurance cannot replace effective business governance, but product recall insurance can support and complement an effective risk management strategy by minimising the financial repercussions of a product crisis and enabling brand recovery.
How can product recall insurance help you?
Product recall insurance can help a company to protect:
Shareholder value
Product recalls can have a significant effect on a company’s balance sheet, causing a cash shortage that can eliminate profit.
We’ll work with you to make sure that product recall protection is embedded in your wider risk management strategy so that you meet your fiduciary duty to protect shareholder value.
Brand and reputation
When risk management systems and controls do fail, what matters is how you respond and manage the event.
We’ll help you ensure your investment in risk transfer includes any crisis support you may need to respond to crises, protect and rehabilitate your brand.
Costs expenditure
Whether incurred by your company or a third party such as a direct customer. The costs to cover labour, transportation and disposal due to a product recall can be expensive. A product recall policy would typically cover these types of costs.
