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Avoiding a Product Recall

Posted by Michelle Landver, CIC on June 4, 2018 at 10:00 AM
Avoiding a Product Recall

Recalling a product is a situation that no company ever wants to be involved in. Despite the extreme unpleasantness associated with them, we hear about product recalls involving everything from contaminated food to unsafe furniture on a daily basis.

In the industries of consumer products, food services, and beyond, building a product recall risk management strategy involves several critical components. According to Stericycle Expert Solutions, the first lines of defense to protect your company are prevention and preparedness[1]:

  • Invest in automated technology. Utilizing automated technology can reduce the chances of human error and can ensure perishable goods are kept at the right temperature at all times.
  • Collect employee feedback. Creating an environment which encourages employees to notify management of potential issues right away will give your company a better handle on quality control.
  • Conduct a “mock recall.” A mock recall can help expose gaps in recall execution or identify weaknesses in supply chain traceability of ingredients or components.
  • Use regulatory bodies as a resource. Opening a line of communication can help your business understand expectations and procedures better. You may also benefit from maintaining a relationship if an issue that might trigger a recall arises.

Even with the best prevention and preparedness strategies in place, the chances of a product recall still exist. Here are four reasons why your company should strongly consider purchasing a product recall insurance policy to protect your balance sheet:

  • Recalls occur more often than you think. The U.S. Consumer Product and Safety Commission (CPSC) and the Food and Drug Administration (FDA) are just two of the regulatory bodies tasked with recalling products deemed to pose a potential health or safety risk to the public.
    • More than 4,200 product recalls were issued by US federal agencies in 2015 and trends are rising.[2]
  • Governmental oversight is more present than ever. Between the Consumer Product Safety Improvement Act of 2008,the FDA’s Food Safety Modernization Act of 2011, and new EU regulations, laws are becoming stricter and compliance continues to be a challenge for businesses.
    • 47% of food recalled in the US in 2016 was because of microbiological contamination.
    • 50% of surveyed food manufacturers spent more than $9 million when a product was recalled.
    • Some of the top product groups commonly recalled are food, electronics, children’s products, clothing, furniture, and appliances.
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Topics: Property + Casualty, Manufacturing

Best Practices for Product Safety at Every Stage of Manufacturing

Posted by David Freeman, Principal, Director of Commercial Sales on August 15, 2017 at 10:00 AM
Best Practices for Product Safety at Every Stage of Manufacturing

Manufacturing safe products is a primary goal and responsibility for all consumer product manufacturers. At every stage along the manufacturing process, there are factors that influence product safety and the associated liability. More and more, manufacturers are being held liable for risks both higher and lower on the supply chain. By following best practices throughout a product’s life cycle, you can improve product safety and help manage these evolving risks.

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Topics: Manufacturing, Property + Casualty

Manufacturers: Are You Handling Overseas Suppliers Correctly?

Posted by David Freeman, Director, Commercial Sales on August 8, 2016 at 10:00 AM
Manufacturers: Are You Handling Overseas Suppliers Correctly?

US manufacturers know all too well the competitive pressures and the shortage of stateside supplies that drive the use of overseas supplies. Foreign suppliers often deliver quality parts at affordable prices and for US manufacturers to stay competitive, there’s often no way around utilizing these resources. However, working with foreign suppliers can be confusing and risky for both new and experienced manufacturers.

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Topics: Property + Casualty, Manufacturing

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