“Supermarkets are continuously faced with exposures that can financially impact the bottom line of a store. One of the most overwhelming financial losses can be from a product being recalled.
Product recall coverage is insurance coverage for the cost of getting a defective product back under the control of the manufacturer or merchandiser that would be responsible for possible bodily injury or property damage from its continued use or existence. Although product recall coverage is a primary insurance coverage for a manufacturer, the exposure must be recognized and protected by grocery and supermarket stores alike. Stores with an “it will never happen to me” mindset are putting their brand and reputation at risk. In fact, a single large recall, like the Westland/Hallmark beef recall in 2008 or the Peanut Corporation of America recall in 2009, can be devastating to a retailer. It’s the retailer who is hit with the initial cost burden of the recall costs, including getting food off the shelves, loss of revenue from decreased sales and repairing public relations.”
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Read the full article about supermarket product recall insurance at ProgressiveGrocer.com
