Number of product recalls has more than doubled over 10-year period

product-recall-awac-250x324-231x300NEW YORK – July 20, 2016 – Advisen, the leading provider of data, media, and technology solutions for the commercial property and casualty insurance market, today announced the release of a paper that discusses the economic impacts of product recalls and the importance of having recall insurance.

The paper highlights:

  • the increasing trend of product recalls from 2005 – 2014
  • probability of experiencing a recall of a certain size
  • industry composition by type of recall for consumer products, foods/beverages/drugs, and agricultural/environmental
  • actual case studies of product recalls

The number of product recalls among food and non-food manufacturers has increased significantly. One case study discusses how an applesauce manufacturer lost $21 million in direct costs associated with a product recall and the subsequent interruption of its business. In the end, the company was forced to file for Chapter 11 bankruptcy.

This and other cases are featured in the free, 5-page paper, sponsored by Allied World, Product Recalls Impact on Business Financial Health.

The paper is based upon Advisen’s loss database, which includes 54,000 product recall and liability cases with a value of nearly $500 billion. This loss data is housed in a structured, relational database, and is mapped to the appropriate company from our database of over 20 million insureds. Learn more by requesting a product recall and liability demo.