As Product Recalls Hit Record Numbers, Captive Insurance Emerges as a Strategic Risk Management Tool
Product recalls, once rare, have become a constant threat, with nearly 2,500 recalls reported in the U.S. by November 2024. These events, often triggered by issues like labeling errors, production flaws, or undisclosed allergens, can severely impact a company’s finances and reputation.
In a recent article published by Business Partner Magazine, Noah Miller of CIC Services discusses how managing recalls is complex, involving regulatory hurdles, global supply chain challenges, and the rapid amplification of issues via social media. Without preparation, businesses risk lawsuits, skyrocketing insurance costs, and long-term damage to their brand.
Proactive strategies, such as implementing captive insurance, can help companies anticipate and mitigate recall risks. These tailored policies cover recall expenses and support quality control and crisis response, enabling businesses to build resilience and minimize the fallout of future crises. As recalls grow more frequent and complex, companies must prioritize preparation to safeguard their operations and reputation.
Read the full article here. Learn how captive insurance can protect your business from escalating risks.