US Recalls Reached Records in 2022
A recent article from Burns & Wilcox revealed that US recalls reached record highs in 2022, where the food and pharmaceutical industries hit the hardest. This is a worrying trend for businesses in these industries, as recalls can have serious financial and reputational consequences.
We’ll explore why having the right insurance coverage is essential in protecting businesses from the risks of recalls.
Recalls can be costly and damaging for businesses, with direct costs such as product disposal, refunds or exchanges, and legal fees.
Indirect costs can include lost revenue, damage to reputation, and decreased consumer confidence.
In the food and pharmaceutical industries, recalls can also pose a significant health risk to consumers.
At Allied Insurance Managers, we offer a range of insurance solutions for businesses in these industries.
- Our business liability insurance protects your business against formal lawsuits or third-party claims. This type of liability coverage will also cover any legal expenses related to your legal defense.
- Our product recall policy can assess your needs and recommend the products that would fit best into your risk management plan.
To minimize the risks of recalls, businesses should have a recall plan in place that outlines the steps to take in the event of a recall. Regular quality control checks can also help detect and prevent potential issues before they escalate. Working with an experienced insurance broker such as Allied Insurance Managers can help businesses identify their specific risks and insurance needs and ensure they have adequate coverage in place.
If you’re in the food or pharmaceutical industry, NOW is the time to review your insurance coverage and ensure you’re protected from the risks of recalls. At Allied Insurance Managers, we’re here to help.