If your business is part of the supply chain of a product,dealing with selling or manufacturing products, you should be aware of potential risks your business faces, and know how to protect your businesses from those risks. As an experienced provider of product liability insurance
, we’ve seen various products over the years get recalled and taken off store shelves for risk of injuring people. From car parts to food items, everything has the potential to harm others and you need to protect yourself from any potential lawsuit.
Insurance Canopy can help you with your product liability insurance and product recall needs by allowing you to purchase a product recall endorsement with your product liability policy.
And, just so you have an idea of the importance for a product liability endorsement on your product liability insurance policy, we gathered some information on how many items have been recalled so far in 2020.
So far in 2020, approximately 150 products have been recalled. Of the items recalled there have been 165,000 inclined infant sleepers
, thousands of packages of clover sprouts
, dietary supplements
, over 4,500 frosted balsam jar candles from Hallmark
, over 3,000 Thruxton motorcycles
, thousands of pairs of kids’ pajama bottoms
, 14,000 infant carriers
, and various automobiles from Jaguar, BMW, Porsche, Bentley, Kia, Cadillac, and Ferrari.
Products get recalled for many reasons. The products we mentioned have been recalled due to being hazardous to people’s health in many different capacities. A car may be recalled due to having faulty parts, such as bad airbags that do not deploy properly making a car crash a lethal situation.
Food gets recalled for being improperly labeled or for making people sick. Just this year we have seen outbreaks of e. Coli and listeria in vegetables, as well as many other foods labeled without listing proper allergens making it a risk to sell to the public.
One of the most risk-heavy areas to create and sell products is in children’s goods. There are more restrictions and regulations regarding items targeted toward children, making it so many more children’s goods are recalled each year.
The Benefits of Product Liability Insurance
Product liability insurance protects the manufacturer, distributor, or seller of a product from legal liability that results from a defective condition on the product being sold. If your business takes part in any part of the supply chain of an item–whether that’s in sales, distribution, installation, or manufacturing, then you need product liability insurance with a product recall endorsement.
Insurance Canopy offers product liability insurance designed to protect your business from two kinds of claims:
- Lawsuits, accidents, or negative reactions arising from a product sold, distributed, or manufactured
- And third-party claims such as bodily injury and property damage losses arising out of a defect in the product your business sold, manufactured, or distributed.
So, it is safe to say product liability insurance is an absolute must if you operate within any supply chain capacity.
You may not ever have to deal with one, but whether you have an involuntary recall or a voluntary recall on your hands, know you’re not alone in the game when insured with Insurance Canopy. You’ll have many costs to deal with during a recall and depending on the severity of the recall, you may have to pay for the following:
- Hiring extra people to manage the recall
- Product disposal
- And more!
With product liability insurance, not only are your products and business protected, but by carrying a policy from Insurance Canopy, you also…
- Support from experienced representatives
- Get 24/7 access to proof of insurance documents
- Can make changes to your policy online
- Give yourself peace of mind
- Enhance your credibility in the industry
Unfortunately, businesses face the potential risk of having to recall their products for a number of different reasons each year. Hopefully you don’t find your business facing one of these situations. However, in the case that you do face a product recall, you can reduce the severity of its impact it could have on your business by planning accordingly–and including product liability into that plan.
If you want to help protect your business from potential risks associated with product recalls,visit Insurance Canopy
today to learn more about product liability insurance and the industries in which you can be covered.