The Expense of Product Recalls
The risk of product recall has increased in recent years as result of global regulatory standards and the constant implementation of new product safety rules here in the U.S. The Consumer Product Safety Improvement Act of 2008 and the Food Safety Modernization Act of 2011 are two examples of how the U.S. government has implemented stringent product safety protocols.
With companies facing stricter product quality obligations, the challenge today is even greater to meet those standards and protocols. One error can tip a company’s balance sheet without the correct protective measures. Advanced Insurance Underwriters works with manufacturers, retailers and distributors and others to put into place a comprehensive product reputation and recall insurance program that minimizes financial loss and the subsequent consequences to an organization’s reputation.