Product recalls happen all the time and can cost millions of dollars. While the cost of a recall is great, the cost of not recalling hazardous product can be even greater. Since 2011, recalls have dropped 20% and deaths related to hazardous products have increased 200%. The industries most affected by product recalls are the automotive, food, pharmaceuticals and child product industry.
In 2012, automobile manufacturers filed more than 650 safety recalls, affecting over almost 18 million units. In 2010, floor mats in 11 million Toyotas had to be recalled because they were the wrong size, causing foot pedals to get stuck. This lead to 37 deaths and $2 billion in losses. Pharmaceutical manufacturers filed 465 Class 1 recalls between Jan. 2004 and Dec. 2012. Class 1 recalls can cause serious adverse health consequences or death. Of these 465 recalls, 237 were dietary supplements. In 2009, the FDA found that poor sanitation of the Peanut Corporation of America could lead to salmonella contamination in peanut butter. This lead to 3913 products being recalled and over $1 billion in costs. In 2012 infant sleep environment products were associated with 7 deaths.
Should a recall happen, business insurance can ease the burden. To find out more about product recalls and how business insurance can help, check out this infographic from InsuranceQuotes.com
From: Bankrate Insurance’s insuranceQuotes.com
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