Product Recall Insurance has never been cheaper. I use the term ‘never’ loosely because I have no idea if that statement is true. The Phoenicians may have only paid a nickel for it. It certainly hasn’t been cheaper in the last 10 years, so that’s good enough. It’s an odd circumstance though: there are more recalls each year, but the cost of insuring recall events has fallen dramatically over those years. It’s the antithesis of insurance cycles. Additionally, more insurance companies are releasing Product Recall Insurance products, so there is more competition for the business. Every recall specialist I speak with agrees that this cannot last since the costs of recall insurance claims will ultimately far outpace the premiums collected. If you are on the fence about adding Product Recall Insurance to your insurance program, this is truly the time to do it.
Managing Insurance Rate Increases
California food & beverage companies were hammered with Work Comp rate increases in the last 8 years. Many organizations that paid $80,000 for Work Comp in 2009 currently pay $200,000 or more without substantial increases to payroll. Food & beverage companies reacted to these increased costs by doubling down on workforce safety management to prevent new injuries and reduce the likelihood that employees will seek out personal injury attorneys.