PHILADELPHIA--(BUSINESS WIRE)--
ACE Group today announced the release of a new white paper, “Product
Recall Insurance: Five Reasons Why Companies Should Strongly Consider
Its Purchase,” exploring the need for and benefits of product recall
insurance policies for many businesses. The white paper, authored by
Florian Beerli, Senior Vice President, Product Recall Underwriting, ACE
Westchester, discusses the various factors that lead to a product
recall, the adverse effects of a product recall incident, and why some
companies have not yet insured themselves against these incidents – and
the reasons they should.
“The aggregate total of all the varied expenses surrounding product
recall, including the actual cost of pulling the item out of the stream
of commerce, the interruption of regular business, the loss of profits
and brand equity, and the media relations and legal fees is
significant,” said Mr. Beerli. “Companies that do not already have
product recall coverage should strongly consider investing in this as a
first line of defense for their economic and reputational well-being.”
Studies have shown that when a company recalls a product there may be a
significant adverse impact on its financial performance, not to mention
the damage to its overall brand.
In addition to examining the costliness of a product recall incident,
the report explains the psychological factors behind why companies
mistakenly believe a product recall incident will not affect their
organization. Added Mr. Beerli: “Even companies with the best safety
records, manufacturing and operational controls are not immune to the
risk of a product recall, in part because of the unavoidable risk of
human error.”
Furthermore, the rise in government oversight of consumer products in
recent years because of new legislation, such as the Consumer Product
Safety Improvement Act of 2008 and the U.S. Food and Drug
Administration’s Food Safety Modernization Act of 2011, mandating the
highest standards of product safety and security is another reason for
companies to purchase product recall insurance.
To access the report, please visit
our website. The material presented in this report is not intended
to provide legal or other expert advice. It is presented for
informational purposes only. Readers should consult legal counsel or
other experts, as applicable, with any specific questions they may have.
ACE Westchester is the wholesale-focused business of ACE Group, which
is one of the world’s largest multiline property and casualty insurers.
With operations in 54 countries, ACE provides commercial and personal
property and casualty insurance, personal accident supplemental health
insurance, reinsurance, and life insurance to a diverse group of
clients. ACE Limited, the parent company of the ACE Group, is listed on
the New York Stock Exchange (NYSE: ACE) and is a component of the S&P
500 index. Additional information can be found at www.acegroup.com
or follow ACE on Twitter by visiting https://twitter.com/ACE_GroupNA.
Source: ACE Group