Are You Adequately Prepared to Face a Product Recall? What Risk Managers Need to Know Before a Crisis
White Paper Summary
In the food and beverage industry, product quality and consumer safety are paramount. Whether producing frozen food items or bottling up fresh spring water, the products being packaged and sold en masse are sent across the country and into individuals’ homes for consumption and use.
Even the most well-run businesses, however, can still face product recall. This isn’t to say the business isn’t working at the top of its game; there are several factors that could cause error outside of the company’s control.
That’s why product recall insurance is essential for the risk professionals in the industry who are looking to navigate a product recall crisis and protect their balance sheets.
“We are in a competitive environment, and so if your product is perceived as being contaminated or perceived as having an issue, that could easily lead to decreased sales and possible loss of contracts,” said Tom Mangan, vice president, global crisis management at Allied World.
Mangan, who specializes in product recall and product contamination insurance, also added that because such things are outside the risk professional’s control, understanding product recall insurance is a crucial step in protecting the company.
Here’s a deeper look at the threats behind food and beverage recalls and contamination, trends impacting the industry, and how product recall insurance can help navigate murky waters if and when they rise.
To learn more about Allied World please visit their website.