This policy provides cover for situations where it is necessary to withdraw a product from the market. This may occur due to the detection of a dangerous fault after the product’s manufacture and distribution.
All manufacturers, importers and retailers must adhere to the EU General Product Safety Regulations. These regulations impose various rules to ensure that products are safe for consumers. Under these regulations any concerns with regard to safety can be reported to the authorities and necessary action can be taken.
Within many sectors of the UK authorities are able to enforce a recall.
Due to the colossal use of social media worldwide, any issues that an individual may be experiencing with a product can reach public knowledge within a fairly short time period. This has resulted in product recalls occurring more and more frequently in recent years.
A recall situation must be dealt with in the most proactive and professional manner possible, taking into consideration the effect on both the brand itself and all parties involved. This is to ensure the best possible outcome for the company’s brand, which could range from a dip in sales, right down to a particular brand ceasing altogether.
The relevant underwriters selected should of course provide the appropriate financial security ratings but in addition, they will also be able to take a flexible approach to cover. This means that they will have both the ability and capacity to extend their wording to meet your specific requirements.
Some of the risks covered by this policy are as follows: