Each year, more and more food companies discover the critical importance of having good food product recall insurance. It is a topic I write about, and speak about, often. I do so because I have seen, and continue to see, time and again, how devastating recalls can be in the absence of a good recall policy. Not just a policy, but a good policy.
As we know, the food industry is fraught with risks that can have catastrophic consequences if not managed correctly. One of the most significant risks is a food recall. While many think of recalls primarily in the context of pathogens (and many recall policies only cover this type of recall), it is important to keep in mind that recalls can occur for a variety of reasons, including foreign material contamination, mislabeling, and other issues that may pose a health risk to consumers. The costs associated with a food recall can be staggering, and will often include disposal of product, transportation, administration fees, lost sales, lost customers, reputational damage, regulatory compliance costs, and potential legal claims.