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Product Recall Risks


It is very important for businesses that are involved in growth, production and preparation of food to have appropriate recall, risk and crisis management plans in place. Available coverage within a Recall Insurance Program includes free pre-loss consulting, crisis management services, and coverage for related expenses. This equates to not only insurance but also loss prevention and loss control services at time of loss. For example; recall, legal and PR specialists, microbiologists and laboratory services to help manage and limit financial losses, business interruption and reputation losses. This is done in order to mitigate the losses to your business and to the insurer providing the coverage. A few carriers have extended their product recall coverage to specifically address mandatory government regulator recall risks. Another reason to be careful is that fines are not insurable. As in all cases loss prevention is the cheapest form of insurance. Losses create a reputation that can put a business out of business if reaction is not swift and prudent in the eyes of the consumer. In today’s world people expect and demand safety. When they think they have not received this you then have to consider Third Party Recall Liability coverage. Lawsuits for bodily injury damages can be devastating to the bottom line as well.

Be sure to seek advice and purchase insurance from those who understand your business!