One of the most intensive and critical situations a company can face is discovering that one or more of their products has a defect or is contaminated.
These crises require quick decisions and decisive actions, often without all the known facts at hand.
Companies need to know when to engage outside parties like insurance partners, legal counsel, and crisis management experts. Early decision-making and responses can make a significant difference in protecting customers, preserving the company's reputation, and maximizing insurance coverage.
Lockton's recent webcast, Bridging Product Recall and General Liability: When Coverage Triggers and Why It Matters, industry experts discussed key themes that companies should know before a recall occurs. Those include:
When to notify insurers of a potential recall situation.
The distinctions and overlaps between product recall and general liability policies.
The difference between incorporate and unincorporated products and why it matters.
How impaired property and third-party coverage can affect coverage outcomes.
Best practices for coordinating with legal counsel, crisis consultants, insurers, and internal stakeholders.
Manufacturers, distributors, retails, insurers, brokers, consultants, and risk management professionals can strengthen their recall preparedness strategy with these insights.
