Product recalls are just a fact of business. If you’re in the automotive, food and drug or child products industries, product recalls are just to be expected.
In the case of a product recall, though the cost may be high, it is best to err on the side of caution. Since 2011 recalls have dropped 20%, but injuries, incidents and deaths related to hazardous products are all on the rise.
On average, over 2,300 product recalls are filed each year. In 2012 alone, automotive manufacturers filed more than 650 safety recalls affecting almost 18 million units. In 2012, infant sleep environment products were associated with seven deaths and just last summer, 300,000 pounds of beef were recalled from a New Jersey manufacturer.
Though product recalls can be a huge risk, that risk can be minimized through business insurance. Business insurance can cover the cost of withdrawing the product, lost revenue and legal repercussions. For more on product recalls and how business insurance can help you, check out this infographic from InsuranceQuotes.com
From: Bankrate Insurance’s insuranceQuotes.com