We have all heard about the problems suffered by Toyota resulting in the recall of thousands of vehicles and of course a huge cost to the Company. But this does not just affect Toyota and other large manufacturers. The European Union’s General Product Safety Directive enacted in the UK in 2005 increases the need for businesses to be able to identify and, if necessary on safety grounds, recall their products from the market. Many manufacturers may think they are covered for such an eventuality through their traditional products liability insurance but generally this only covers the consequences of injury or damage caused by the products and will not insure against the cost of any necessary product recall.

The rate of recalls is rising. In the EU during 2009 notifications of recalls rose by 53% and therefore anyone involved in manufacturing needs to have plans in place. The most effective method of reducing the negative impact of a product recall is to be well aware of how your business may be affected and be prepared.

At Castlemead Insurance Brokers, we are experts in providing the individual level of cover your business needs and we can also help you prepare for the unexpected.