Product recall risk in manufacturing

Marsh can help manufacturers manage product recall exposures, protect their reputation, and respond to recall events.

Reduce the impact of product recalls

Product recall risk can arise at any point in the manufacturing, sale, or distribution of products. For manufacturers like you, this can include safety issues, product integrity concerns, government-mandated recalls, or negative publicity linked to products already in the market.

As manufacturing and distribution models become more global, recall exposures can become more complex to manage. Manufacturing technology, distribution logistics, and the sourcing of products, or components from markets with varying levels of regulatory oversight can all influence how recall situations develop and how they affect the business.

Marsh’s product liability and recall specialists help manufacturers like you make decisions intended to reduce risks and quickly respond to recall situations as they arise. We work with you to develop tailored insurance and risk management solutions that can address recall exposures and support response, claims advocacy, and business continuity.

Why Marsh

Marsh’s product liability and recall specialists help manufacturers assess recall exposures across the manufacturing, sale, and distribution of products. Our specialized team brings industry expertise and a global perspective to support risk reduction decisions, tailored insurance solutions, and response planning when product issues arise.

With Marsh’s support, manufacturers can be better prepared to respond to product recalls, with advisory and claims advocacy support designed to help address potential impacts on reputation, profitability, and business continuity.

FAQs

Product recall risk in manufacturing refers to the potential financial, reputational, and operational impact of a recall event involving products manufactured, sold, or distributed by a company.

A product recall can be triggered by a multitude of issues, such defective products, safety concerns, product integrity and quality concerns, government-mandated recalls, or claims that a product caused injury or property damage. Recall exposure can also increase when component parts are sourced from markets with weaker regulatory oversight.

Product recall events can lead to lost sales for manufacturers, erosion of customer confidence, negative publicity, public health concerns, and potential litigation or settlement costs. Even a single injury claim or recall can create significant pressure on a company’s balance sheet.

Product liability and recall insurance can help protect a business from costs related to liability claims or recall events involving its products. Coverage may address bodily injury, property damage, legal representation, settlements, judgments, lost income, and other first- or third-party losses, depending on policy terms.

Manufacturers can manage product recall risk by understanding product-related exposures, making risk-reduction decisions, and preparing to respond when recall situations arise. Specialist advisors can help develop insurance and risk management solutions that support recall preparedness, response, and claims advocacy.

Contact us

Connect with Marsh’s supply chain specialists to discuss how we can help you manage product recall risk and strengthen your response strategy.

Case Study

Product recall risk in manufacturing

Reduce the impact of product recalls

Product recall guidance for safety issues and product integrity concerns

Tailored insurance and risk management solutions for product manufacturing, sale, and distribution exposures

Specialist advisory and claims advocacy to help respond to recall events

Why Marsh

FAQs

Contact us

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Product recall risk in manufacturing

Reduce the impact of product recalls

Product recall guidance for safety issues and product integrity concerns

Tailored insurance and risk management solutions for product manufacturing, sale, and distribution exposures

Specialist advisory and claims advocacy to help respond to recall events

Why Marsh

FAQs

What is the risk of product recalls risk for manufacturers?

What can trigger a product recall?

How can product recall risk affect manufacturers?

What does product liability and recall insurance cover?

How can manufacturers manage product recall risk?

Contact us

Related insights

Supporting a large automotive manufacturer through complex construction challenges

North American trade under review: 3 paths

Beyond the shock: Managing exposure and risk in the wake of conflict

Adapting risk frameworks to a more complex threat landscape