4 things to know about product recalls

For food or metal packaging manufacturers, product recalls constitute staggering financial losses as they absorb the cost of replacing and fixing defective products.

They must overcome:

• Costs of “Reverse logistics” and disposal of contaminated products
• Loss of revenue
• Fines and litigation costs
• Damage of credibility with customers & partners

Before anything else, food and can manufacturers must take proactive steps to protect their operations and reputation. Have you asked yourself these important questions in case a recall should occur?

1. How can you ensure contaminated products don’t leave your facility?

• Implement a test-and-hold policy to stop contaminated products from shipping.
• Develop a plan to act quickly in case of contamination to limit exposure

2. Are you financially and operationally ready to handle a recall?

• Invest in recall insurance that covers product loss, revenue impact, fines, reputation repair, and third-party losses.
• Take advantage of included services like audits, customer notifications, and product retrieval.

3. Is your insurance aligned with the specific risks of your production?

• Align insurance with specific risks based on revenue, product range, and quality processes.
• Regularly review and adjust your policy to ensure it addresses evolving risks in your operations

Quick action and tailored recall insurance can minimize financial and reputational damage.

But of course, prevention is still better than risk.

See our ultimate risk-prevention solutions:

For Flat Sheets:

For Enamel Rating:

For Formed Can: