Got Product Recall Insurance?
Pinpointing the source of the product defect takes time and costs a lot of money in decreased sales, not to mention the fallout the defective product has on brand loyalty and customer perception. Take proactive steps to prevent a product recall by controlling mistakes employees make and forming a trusting relationship with your suppliers.
Youve got policies in place to ensure youre manufacturing high quality products, so make sure theyre enforced. As for suppliers, try to keep the supply chain as short as possible to reduce the chance for problems along the way.
Another way to limit the damage from a product recall is to purchase product recall insurance. This type of policy helps cover the additional costs of a recall, including:
- Product loss
- Costs to withdraw the product from market
- Product disposal
- Product testing
- Overtime wages
- And, crisis management
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