With today’s increasingly global and interconnected marketplace, product recall incidents are getting bigger, more international, and increasingly complex to handle. My colleagues and I recently published a white paper, Product Recall: Forewarned is Forearmed, addressing these issues.
In the paper, we look at the issues facing manufacturing companies and highlight some of the risk mitigation steps that suppliers should take to help protect their business from the potentially crippling effects of a product recall.
We also examine some insurance misconceptions around product liability cover, and highlight more appropriate insurance solutions that can provide more effective financial assistance for product recalls.
In a recent article in Food Processing magazine, I discussed the trend of food companies in particular spreading identified risks among ingredient and packaging suppliers. With the average cost of a food recall in the U.S. at $10 million, companies are looking for ways to pass that cost down the supply chain.