Over the last few years, consumer, regulator and media pressure for safer products has prompted a rise in frequency and severity of consumer product recalls. The FDA and associated U.S. and international regulatory agencies have instituted more rigorous requirements to report and track defective products or contaminated foods. Concurrently, the costs associated with these product recalls, both financial and reputational, have grown significantly.
While product liability insurance - typically purchased by businesses that manufacture, sell or distribute products - safeguards those businesses from the impact of liability in the event of harm caused by their products, it does not provide protection against the costs associated with the recall of a product.
RCM&D’s product recall strategy incorporates prevention, planning, policy design and response management. With several coverage layers to navigate, from basic policy options to cover communication and retraction costs, to broader coverage for brand rehabilitation expenses and profit losses, or third-party coverage, RCM&D consultants provide experienced risk management consulting and claims advocacy to develop the most comprehensive program for an organization.
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