product recall

May 30, 2017

Product recall’s high price tag for BMW

Last week, BMW announced they are recalling over 45,000 7-series models for a door problem that can allow the door to open when the car is in motion.  The fact that such an obvious safety hazard triggered a recall is not surprising.  What is surprising is that the cars in question are actually older models from 2005 to 2008.  So, these models in their current form, may not even be in production anymore, since car models typically change year-to-year.  This raises an important point on product recall insurance — Just because you don’t make the product anymore, it doesn’t mean you don’t […]
May 1, 2017

The high costs of product recalls

Product recalls can be costly, but many businesses do not buy coverage By Erin Ayers, Advisen From vehicles to mobile phones to nut butter, product recalls have the potential to seriously affect businesses’ bottom lines, but many organizations don’t realize the need for product recall insurance, according to Florian Beerli, senior vice president at Chubb. “There’s a lack of education and understanding of what the coverage does cover,” Beerli said in a recent interview with Advisen. Some manufacturers may feel they have coverage for costs related to recalling and replacing products along with financial loss through their product liability coverage. […]