Newfoundland Product Recall Insurance
A poorly handled product recall can have a catastrophic impact on your brand reputation, organizational assets and even the ability to continue operating. Unique liability challenges exist for businesses in relation to the fabrication, trade and delivery of products, as well as warranty issues in relation to product performance.
A product recall can devastate your brand name and profitability of your company. No matter the size, industry, location or status, a business can be ruined if it fails to manage a recall properly.
In order to minimize the costs and mitigate the risks associated with such an incident, companies need to proactively assess and manage their product recall risks.
Newfoundland Product Recall Insurance reimburses costs incurred to recall a product and to replace it in the marketplace with a safer product. It also offers knowledgeable aid and guidance during this process.
What Is Covered by Product Recall Insurance?
Your coverage can include accidental contamination, malicious product tampering and/or product extortion. Additional coverage options can include the following:
- Recall costs
- Pre-recall expenses
- Business interruption or loss of gross profits
- Rehabilitation costs
- Third-party recall costs
- Extortion demands
Product recall coverage is usually set up on a "claims made" basis policy. Product recall can be a complex issue that must be managed properly, including accurately identifying the range, type and degree of the loss, to the application of coverage, managing regulators and ensuring public safety.
Why Do You Need Product Recall Insurance?
In recent years, the risk of product recall has risen drastically. There are considerably more regulatory standards and new rules for product safety. For companies, this means more rigorous product quality responsibilities.
Mistakes due to human error are inevitable. Product recalls take place practically every day. Very rarely does a day go by without the news of recalled goods for reasons of illness or safety. In fact, thousands of products are recalled each year.
The costs related to a product recall can be excessive. When a product is recalled, a series of high-priced events are set into motion. The cost starts to rise when the product is pulled from the market. With most recalls, the product has to be removed, destroyed and replaced. In addition, media relations experts must often be retained to communicate the recall details to the general public. Lawyers and other professionals are also often retained for interaction with relevant government agencies.
It is not uncommon for a company that experiences a product recall to spend millions of dollars. In some extreme instances, an entire industry can suffer due to the product recall of a single company.
All too often, a company fails to invest in Product Recall Insurance because they are under the misconception that it cannot happen to their company. With the high number of product recalls that are announced routinely in the media, it is obvious that no company is immune to such risk. This is true even when they maintain the best operational and manufacturing controls and safely records.
Coverage to Fit Your Needs
Crosbie Job Insurance has worked with some of the largest food processors and manufacturers in Newfoundland in order to mitigate their exposures in case of a recall. We have a seasoned commercial team that can get the job done for you. If we do not know the answer, we know where to go to find the answers.
Based on the types of products that is manufactured by your company, you can select an insurance policy that is right for you. You can sleep easy knowing that We’ve Got You Covered. Fill out our Protection Savings Quote Form and one of our professionals at Crosbie Job Insurance will contact you to review your options.