We’ve all seen the notices in stores and in newspapers for product recalls. From power tools to strollers, kids’ toys to clothing, product recalls are part and parcel of everyday life for a consumer. If the products are dangerous a recall can be frightening for those who have purchased the item. But for the producer, manufacturer or importer a product recall can be a logistical and PR nightmare. It can challenge even the strongest companies and brands. And handled incorrectly, a product recall has serious financial consequences for a company.
During the last few years, there have been a high number of product recalls which have grabbed the attention of the media – only serving to further alarm the public. This increase in recalls can perhaps be attributed to globalization, with many businesses relocating their production facilities to other countries in order to lower labour costs. But it’s not just overseas production facilities that cause product recalls. You only have to think back a few years to the trials of Maple Leaf in Canada and its massive recall of listeria contaminated products. That’s why having a Product Recall Insurance policy from Axis Insurance Managers is a sound commercial decision.
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