Entrepreneurs need to protect their business – and their customers – in the wake of a huge surge in product recalls around the world.
Anthony Hughes, urged business owners to make sure they had the right cover in place to safeguard the very future of their company.
“There has been a massive increase in the number of food and vehicle product recalls with the figures reaching record highs, and governments across the world are taking greater interest in the protection that companies have signed up for.”
Mr Hughes said this extra scrutiny had led to the formation of the UK’s Office for Product Safety and Standards.
“We’ve all seen the publicity and the issues with defective tumble dryers in the UK, and there has been great concern about manufacturers’ abilities to complete remedial works on the affected products.
“If your company doesn’t have the appropriate insurance cover in place, a product recall and the following media storm could cost your business dearly, even threatening the future of your entire business.”
Mr Hughes said business owners and their insurers needed to be aware of the rising trend for product recalls, and the impact of the increased scrutiny.
“Governments would prefer to have recall systems in place that are entirely voluntary, and which require the smallest involvement and expense from the authorities, but given the seriousness of the situation, more resources are now being allocated to improve the process. It’s clear that earlier warnings and better remedial action are required, but the rate of recall success remains disappointingly low.
“The automotive sector generally tends to have higher success rates than other industries, but even that sector is struggling, so it’s vital that businesses step up their game in order to keep their customers safe.”
Mr Hughes said as well as planning for product recalls, and ensuring they had the appropriate insurance cover, businesses should practice their emergency planning routines to make sure they could respond quickly and effectively.
“Product recalls seem to be an everyday occurrence in today’s increasingly technological world, and businesses would be wise to be prepared.”