Product Recall

recall
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Helping to protect your balance sheet and reputation

Tougher regulation has made product recall rife. Even as regulators wield higher fines, many consumer-facing industries – food and drink to pharmaceutical, as well as consumer goods and automotive – often overlook recall insurance. Some businesses only focus on the cost to retrieve the products, which can be as little as 5% of the overall expense, or think they can recover costs under another insurance policy and then find they can’t.

 

The right insurance coverage


In a recall situation, there is more at stake than just the cost of recalling the product such as the loss of gross profit because the products can’t be sold. There’s also the cost of campaigns such as special offers to restore sales after a recall as well as the cost of crisis consultancy to rebuild consumer confidence. With the right insurance coverage though, you can protect your balance sheet and your reputation.

We enable you to pre-empt sector-specific risks and prepare for what is a complex claims process by, for example, recording your accounting data in a format that can show you’ve suffered a financial loss. We can also review contracts from your clients to make sure your insurance policy covers your obligations to them.

The tipping point: cost cutting pressure piles recall risk onto manufacturers

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Our services

We’ll help you prepare for a recall, get the right insurance coverage and support you when it comes to making a claim. Our services include:

  • Engaging with you to understand the sector-specific subtleties of your business

  • Fine-tuning the language in your policy to match your coverage to your individual needs 

  • Broking to the UK, US and Bermuda insurance markets to get you coverage at the right premium

  • Handling your claims to make sure your policy responds as you’d expect

We’ll help you prepare for a recall, get the right insurance coverage and support you when it comes to making a claim. Our services include:

  • Engaging with you to understand the sector-specific subtleties of your business

  • Fine-tuning the language in your policy to match your coverage to your individual needs 

  • Broking to the UK, US and Bermuda insurance markets to get you coverage at the right premium

  • Handling your claims to make sure your policy responds as you’d expect

Our team

The Lockton Product Recall broking team has extensive experience which enables for a better understanding of a clients needs, exposures and insight in to the most advantageous market for their requirements both in the UK and abroad. 

 

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Case study

Robertshaw


When global appliance controls designer-manufacturer Robertshaw became concerned about their insurance, including the product liability and recall advice they’d had from their existing broker, they called in Lockton. We audited and reviewed all their programmes and discovered non-concurrent structures, 30-plus gaps in property placement and a series of other flaws. We then set out to restructure their programmes, this time using the right language. Altogether this saved the company over US$1.25 million – more than double the saving they’d expected*. And we filled the gaps and fixed the flaws, giving them coverage for financial loss, for the first time ever, and halving their retention.

 

*the scope of the broking exercise will depend on and be tailored to your circumstances and in accordance with law and regulatory requirements.  Premiums, coverage and any savings will likewise be dependent on your circumstances and underwriters acceptance of risk.

 

 

Can we do this for you?

Why Lockton?

We're more than an insurance Broker
- We're independent specialist risk consultants

  • Find the right fit
    We will ensure to always understand your financial goals and position and use out know-how to create a broking or collateral strategy that fits your objectives.
  • Predict impacts on your business
    We combine detailed modelling and financial analytics to show you the effect of an insurance programme on your business and the risks you face.
  • Fight for you
    We are not afraid to challenge insurers to achieve the best result for you.
  • Keep up to date
    We keep up with develpments in your industry, to make sure we understand your business
  • Keep costs low
    Help risk financing come up with lowest cost or most suitable programme.
  • Global Expertise
    Lockton, Inc. is the world's largest privately held insurance brokerage firm.