Product recall insurance provides cover for accidental contamination – 95% of claims – malicious product tamper and extortion. The insurance responds to events where there’s potential to create bodily injury.
But do you have the in-house capability to examine a contaminated product? Could you assess the threat it poses to people’s health, pinpoint the source, and liaise with the appropriate government, regulatory and industry bodies?
How quickly could you create consistent, multichannel communications? Could you manage negative publicity and enact an effective crisis management strategy?
All of this must be done within hours. There’s then the challenge of deciding what products to recall, identifying their location and deploying the necessary resources to make it happen. And while this happens, how do you meet orders? Could you fulfil contracts? If not, how quickly will they be lost and when will you get the opportunity to win them back?
Product recall is not a matter of losing production for a day or two. It has the potential to kill your brand and your business.
Get it right and customers, suppliers and regulators will respect you as a professional business that takes its responsibilities seriously. Get it wrong and they see you as a company that can’t cope in a crisis, doesn’t value public health and puts profit above customer safety.