Withdrawal of products from the market
The launching of products that do not meet certain standards or are contaminated can expose the company to significant financial losses in terms of withdrawal and preservation of its reputation. Awareness of the risk and the negative consequences that may arise in the event of its implementation is crucial for the continued operation of the company.
The conclusion of an insurance policy covering the costs of product withdrawal from the market may protect the company from incurring large financial outlays. It happens that the costs associated with the withdrawal of a product from the market are so high that they lead to the company’s bankruptcy. As a result of an unpleasant incident and an inadequate crisis management process, the company may lose its reputation and trust of its customers.
The number of market incidents related to questioning the safety of goods confirms that the risk is real. The food industry is most exposed due to the nature of the potential damage, however, we encounter the implementation of risks in many companies outside that industry. When arranging an agreement, we try to adjust the protection to the needs of the industry in which a given entrepreneur operates. It is possible to cover the costs of withdrawing products from the market, employment costs of crisis management specialists, costs of disposal or destruction of withdrawn products, costs incurred to restore the current level of sales and market position.
After proper consultation and discussion of the nature of the agreement, we offer to the largest customers protection against damage occurred in connection the criminal nature i.e. contamination of their products or raw materials.