The risk of a product recall has increased exponentially in recent years for Waterbury food manufacturers as a result of the implementation of new product safety rules and manufacturing statutes. While designed to help protect consumers from illness and health hazards related to food contamination, these policies often create hurdles for food manufacturing operations struggling to comply with ever changing policies and requirements.
Governmental oversight of the production and distribution of food goods is increasing in strength and scope. Rigorous product safety regulations such as The Consumer Product Safety Improvement Act of 2008 and the Food Safety Modernization Act of 2011 are reshaping the way consumable products of all types are crafted, shipped stored and packaged. The Food and Drug Administration (FDA) instigates the recall of thousands of products a year, and thousands more self-issued product recalls are issued by companies who identify issues through their own internal quality investigations.
The fact is that no organization is immune to the hazards involved with a product recall, even those with the preventative practices and quality assurance standards. Food manufacturing is multi-step, collaborative process. As such, each step throughout the food-supply chain can expose consumer goods to contamination and health hazards. Everything from supply ingredients to food packaging materials and processes can significantly influence the safety of these goods.
Product recalls can be a huge financial strain on Waterbury food manufacturers, as the expenses quickly mount due to the cost of managing the recall event. The physical clean-up can be costly. In many situations products must be removed from the consumer market, destroyed or disposed of properly, and then replaced with unaffected merchandise. Additional expenses typically include public relations and brand management efforts as well as legal aim and counsel.
Product recall insurance is a supplemental business insurance inclusion that can help reimburse Waterbury food manufacturers for financial losses caused by a product recall. At Sinclair Risk and Financial Management we proudly server Connecticut food manufacturers by providing comprehensive business risk management solutions. We can provide the support and financial security needed to weather a product recall. Our Waterbury food contamination policies can also help food producers recover from the devastating aftermath of a product recall and other food contamination related exposures. To find out more about any of our Connecticut food industry solutions, call us today at (877) 602-2305.