A Guide to Product Recall

Product recalls and safety notices are made by traders in the case of products having problems which could affect the safety of the consumer. 

The scope of a recall may vary depending on the product and set of facts that go into the recall. Following the report of an initial incident tend to follow a pattern and require immediate attention. 

It is essential if you are running a business, especially one in the food and drink industry, that you are aware of product recalls and how to manage them with your business. Here is a guide on how to deal with product recalls and why you should consider Product Recall insurance.

  • What is a Product Recall?

Product Recall occurs when traders manufacture goods and products are recalled from sale due to damages, faults, and not passing checks and tests that prevent consumers from becoming ill, injured or could cause damage to your property.

Particularly in the food and drink industry, there is a huge risk to companies, especially when considering allergens in packaging. If, for example, a company declares a product is free from nuts, yet it has been made in a facility where there are nuts around, then this could potentially result in a product recall. 

  • Why do I need Product Recall Insurance?

Having a product recalled can cause significant risks to the business. Not having sufficient product recall insurance can result in expensive claims, damage to brand reputation and legal intervention.

If your business name is on the product, your business has repaired or changed the product or the product is manufactured abroad or by a third-party company; then you are legally liable to pay costs in the case a recall occurs. This is also the case if the manufacturer of the product is out of business. 

  • What does Product Liability Insurance Cover?

Product Liability insurance is not a legal requirement but could save you from various different potential risks, covering you from defective products, contaminated food products and failure to meet certain standards and regulations.

L Wood can help source the right cover for potential product recalls. Contact us on 01274 515 747 or email us at mail@lwood.co.uk