TO HELP YOU MANAGE
SIGNIFICANT RISK CHALLENGES
DURING A PRODUCT RECALL
The number and magnitude of product recalls has increased significantly in recent years. On average, nearly 10 product recalls occur every week in Australia. Yet many food and beverage companies are uninsured or underinsured for product contamination or mislabelling, which are the most common triggers for a recall.
In a product recall, Australian consumer-facing companies need to protect their brand reputation – and their balance sheet – from potentially catastrophic damage.
Eastern Equity Insurance Brokers can provide you with a range of insurance solutions tailored to specific sectors to help you manage the significant risks and challenges that can occur during a product recall. This may be the result of a defective or mislabelled product, contaminated goods, or items that have been tampered with, and the costs involved will likely be far greater than those of simply recalling the product. The results can be catastrophic for your business.
Whatever industry you are in, a product recall could leave you exposed to an array of reputational and financial risks that traditional casualty or product liability insurance does not cover. We work with Australian companies in a range of sectors to ensure that they have the appropriate levels and type of cover, including:
- Toys and other consumer goods
- Whitegoods and electronics
- Clothing (manufacture and distribution)
- Furniture (including office furniture)
- Food and beverage
- Pharmaceuticals and cosmetics
- Packaging and distribution
Our team of Australian business insurance brokers will help you to understand your exposures and provide guidance on appropriate coverage. The range of insurance cover we can offer is broader than you will find in general liability policies, and ensures that you are protected against a range of possible outcomes, including:
- recall costs
- withdrawing a product from sale
- replacement, repair and/or refund costs
- loss of income resulting from a recall
- professional services fees
As part of our service to our product recall insurance clients, we are here to guide you throughout the process, from selecting the right degree of cover to making a claim, if necessary. We can also offer advice as to how you can identify risks and minimise the chances of products becoming contaminated or damaged, thus minimising your exposure to risk.