Insurance professionals help clients grasp the risks and impacts of events like recalls or contamination, highlighting the importance of recall and contamination insurance for covering costs and providing crisis management support. CRC Group offers specialized expertise and extensive market access to help retail agents secure optimal coverage and manage complex risks effectively.

A recall can be costly for a food manufacturer. But what if the contaminated food is shipped to other manufacturers and used in other products? What if those products hit retail shelves? The potential cost of a recall can quickly become catastrophic if it extends to customers, distributors, and retailers.

In 2024, manufacturers are expected to face economic uncertainty based on the ongoing shortage of skilled labor, lingering supply chain disruptions, and new challenges around innovation and climate change. Like any other industry, mistakes happen in manufacturing, which means maintaining both E&O and product recall coverage should be an important part of any company’s risk management plan.

Product recall events are a known risk of doing business across many sectors. The discovery of these concerns can come from regulatory agencies like the FDA, customer product testing, supplier issues, and/or a company’s own quality control process. Even companies with the best quality control processes in place are vulnerable to product recall risks.

A recent law signed in 2023 expands regulations and reporting requirements for cosmetic manufacturers, giving the FDA greater oversight of the industry. These updated policies could increase the frequency and size of cosmetic product recalls. What can manufacturers do to help minimize their risk?