Product Recall

Product Recall

Product Recall

A product recall is a crisis that can change a company’s reputation and economic outlook. Our team can help protect your company before a crisis.

Product recalls for new and established products occur all too often, and they have serious repercussions. A compromise in product safety can cause devastation for businesses. For companies offering goods to the public, even minor compromises of product integrity can have significant and potentially permanent consequences. For these businesses and their products, whether food, beverage, pharmaceuticals, consumer goods, ingredients or component parts; the risk of a product recall and/or contamination remains a severe exposure assumed by all stages of the supply chain.

The product recall is an effort to limit ruination of the corporate image and limit liability for corporation. It can be difficult, if not impossible, to determine the total financial impact of releasing a defective product that could endanger someone’s life.  This heightened concern has changed the dynamics between suppliers and OEMs. The manufacturing and automotive industries have close and co-dependent relationships between the supplier and customer, OEMs are increasingly placing responsibility contractually down to their suppliers where possible. Issues surrounding responsibility for design and assembly can complicate who may be at fault.

Product manufacturers operate in a state of constant innovation and development. Regulatory agencies and various governmental bodies, tasked with enforcement, have contributed to an environment of intensifying standards and expectations. Today’s technology allows sharing of information, any offense can reach millions of consumers in an instant. A dangerous product can breach customers trust and cause widespread irreversible damage to a company’s brand and revenue.

A Jordan and Jordan CRE specialist can develop a comprehensive insurance plan

Product Recall Insurance provides coverage for product recall expenses, as well as liability to third parties, in the event of a recall of an insured’s finished and component goods. Insurable expenses can include the costs associated with notifying customers, shipping and disposing of a recalled product, repairing and replacing the product, and refunding customer payments. Expenses associated with extra warehousing and personnel required to support a recall can be included as well.

Jordan and Jordan can help manage your
challenges with solutions such as:

Jordan and Jordan Insurance group’s work with you to customize a Product Recall Insurance program. We provide services to a wide range of industries:

  • Tire and wheel manufacture
  • Distributors of foreign goods in the U.S.
  • Consumer product manufacturers
  • Electronic component and equipment manufacturers
  • Food and beverage operations
  • Children’s product manufacturers

Contact us today for more information

Your Product liability experts in the tire and motorsports industries