What if the products your company sell has to be recalled due to; potential defect or might cause any harm to the end user? In the food and beverage industry, product quality and consumer safety are important.
Your traditional ‘Commercial General Liability’ (CGL) policy might cover you for property damage or bodily injury but not for product recall related cost, crisis management and loss of profits. You should be aware that insurance company often rely on various exclusions in traditional policies to deny coverage for recall-related claims.
Advertisements in shops are less likely to be effective, as online sales rise and many shops close subject to restrictions, especially in times of lockdown. Direct methods of communication, such as letters and emails, are more likely to reach those at risk who are using your products. We also expect a rise in the use of social media to advertise recall notices with the increase in online sales.
What information should be included in a recall post on social media platforms?
• Product Name, Hazard, and Remedy: Firms should provide the name of the recalled product, hazard, and remedy. Be concise and creative in your message.
• Photo: The post should include at least one photo of the product.
• Website Link: A link to the press release and/or the firm’s website or video demonstrating the recall should be included in the post. Consumers can click to find more information.
• #Recall hashtag: Use hashtags to help consumers find your post. We suggest (#recall) and any hashtags your firm may use in marketing the product.
• Featured Post: The post should be prominently displayed for at least 120 days, using features such as pinning the post, multiple postings, or paying for the post.
• Video: Firms should consider posting how-to-videos on YouTube or other sources to assist consumers in making repairs on recalled products, when applicable.
Contact Premier to review your risk management approach.
