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Recalls: Does Business Insurance Cover the Risk?

RECALLS: presented by: insuranceQUOTES DOES BUSINESS INSURANCE COVER THIS HUGE RISK? A BANKRATE COMPANY Product recalls cost more than just money RECALLS HAPPEN. A LOT. In 2012, automobile manufacturers filed MORE THAN 650SAFETY RECALLS On average there are more than AFFECTING OVER 17.8 MILLION UNITS 2,300 PRODUCT RECALLS VEHICLES CHILD SEATS VEHICLE EQUIPMENT per year in the U.S. Industries plagued by product recalls: Thats more than AUTOMOBILES FOOD Б CHILD AND INFANT PRODUCTS PHARMACEUTICALS PER DAY PRODUCT RECALLS ARE A HUGE RISK+ THE RISK CAN BE MINIMIZED THROUGH BUSINESS INSURANCE CARS STRICTER LAWS AND THE IMPORTANCE OF COMPANY IMAGE HAS FORCED CARMAKERS TO RESPOND QUICKLY WHEN A PROBLEM IS FOUND. 2/3 OF RECALLS WERE VOLUNTARY (not mandated by the NHTSA) 2013 LEXUS CARS WERE RECALLED 270,000 because a nut holding the windshield wiper arm could come loose under heavy load such as heavy rain or snow. THERE WERE NO RELATED ACCIDENTS 25 OUT OF 270,000 OWNERS REPORTED THIS ISSUE 2010 VEHICLES RECALLED BY TOYOTA 11,000,000 because floor mats were the wrong size, causing pedals to get trapped. *37 DEATHS $2 BILLION LOST DRUGS 237 OF THE 465 ORUGS SUBJECT TO A CLASS I RECALL IN THE U.S. BETWEEN JANUARY 2004 AND DECEMBER 2012 WERE DIETARY SUPPLEMENTS. CLASS 1: CAN CAUSE SERIOUS ADVERSE HEALTH CONSEQUENCES OR DEATH FROM JANUARY TO APRIL 2013 THERE WERE 107 DRUG RECALLS FOOD From Sept. 2011 to Sept. 2012 FDA recalled 56 ITEMS 20 ITEMS that contained listeria, E. coli or salmonella due to undeclared allergens, listeria and a few cases of salmonella PRODUCE DAIRY 18 ITEMS 300,000 POUNDS of beef recalled from a New Jersey manufacturer last because of undeclared allergens summer BAKERY MEATS In 2009 FDA revealed Peanut Corporation of 361 COMPANIES HAD TO RECALL 3,913 PRODUCTS This cost food companies and the government more than $1 BILLION America's poor sanitation could lead to salmonella contamination in their peanut butter CHILD PRODUCTS IN 2012, NURSERY PRODUCTS ONCE AGAIN TOPPED THE LIST WITH 31% OF ALL CHILD PRODUCT RECALLS Sleep environment products are hazardous * 7 DEATHS were associated with these products in 2012 CRIBS STROLLERS HIGH CHAIR PACIFIERS RECALLS DROPPED 20% SINCE 2011 INJURIES UP 42% INCIDENTS UP 49% DEATHS UP 200% SOME OF THE MOST EXPENSIVE PRODUCT RECALLS: Merck Vioxx Tylenol $100 MILLION $725 MILLION in lost sales $4.85 BILLION in payments Westland/Hallmark meats $500 MILLION 143 million Ibs of beef recalled 1982 2000 2004 2006 2008 2010 FirestoneFord Tires $3.44 BILLION Sony Batteries in Dell Laptops $400 MILLION Toyota $3 BILLION SHOULD A RECALL HAPPEN, BUSINESS INSURANCE COVERS: Reimbursement of costs required to remove a defective product and restore a safe one The cost of withdrawing the product Loss of revenue Business interruption/production halt Third-party investigative expenses Victim medical costs THIS GIVES COMPANY TIME TO FOCUS ON REPUTATION Extortion demands MANAGEMENT Legal repercussions Presented by: ÎNSURANCEQUOTES.COM Sources http://www.nhtsa.gov/About+NHTSA/Press+Releases/NHTSA+Announces+More+Than+17.8+Million+Products+Recalled+in+2012 http://money.cnn.com/2013/01/30/autos/toyota-recall/index.html http://usatoday30.usatoday.com/money/autos/2010-02-17-toyota17_ST_N.htm http://online.wsj.com/article/SB10000872 http://www.forbes.com/sites/daviddisalvo/2013/04/18/massive-drug-recalls-are-a-wake-up-call-for-vitamin-and-supplement-industry/ http://www.expertrecall.com/wp-content/uploads/Q1-2013_ExpertRECALL-Index.pdf http://news.msn.com/science-technology/buyer-beware-what-foods-are-recalled-the-most http://www.fdli.org/docs/default-document-library/food-peanut---combined-done.pdf?sfvrsn=0 http://www.kidsindanger.org/docs/reports/SafeSleepSafePlay021313.pdf http://images.businessweek.com/slideshows/2013-01-17/the-most-expensive-product-recalls#slide11 http://www.catlin.com/en/unitedkingdom/newsandviews/-/media/downloads/thought-leadership/product%20recall%20-%20the%20developing%20story.ashx 72396390444799904578047700401681438.html DEVELOPED BY N NOWSOURCING http://online.wsj.com/article/SB10001424127887324669104578203440990704994.html

Recalls: Does Business Insurance Cover the Risk?

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This infographic provides a deeper look into business insurance and product recalls.

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