Consumers today are quick to respond to food safety issues — even unproven ones. If in doubt about a product, they will often immediately switch to another brand. For food and beverage companies, this poses major risks. If you mismanage even a single product recall, you can face significant long-term ramifications: decreasing customer loyalty, declining sales, degradation of your brand, even potential bankruptcy. But a product recall doesn’t have to spoil your future. There are several steps you can take to show you have your customers’ safety top of mind.
Responding to a product recall event can be expensive. Depending on your risk exposure, evaluate if you need product recall insurance. Over the past few years, this type of insurance has become more accessible and affordable. In the event of a product recall incident, insurance can cover a wide range of losses, from the cost of decontaminating your plant and equipment to revenue impacts, tracing, customer notification and disposal.
To read the full article in Food in Canada, click here.
Contact Zainab Walji to discuss insurance implications in greater detail.