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ARTICLE · 01 DECEMBER 2021

More Businesses Will Take Out Product Recall Insurance

Borden Ladner Gervais LLP
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We predict product recall rates will climb thanks to complex global supply chains, adoption of automation, inconsistent regulation across jurisdictions and the COVID-19 pandemic.

CanadaInsurance
George Wray
George Wray
Laura Day
Laura Day
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Background.  We predict product recall rates will climb thanks to complex global supply chains, adoption of automation, inconsistent regulation across jurisdictions and the COVID-19 pandemic. In addition, consumers are becoming more interested in product safety, health and ESG (environmental, social and governance) issues, with social media groups quickly spreading news of potential product deficiencies and recalls.

"Smart" and "connected" products, which allow product tracking and ongoing consumer contact through a manufacturer's app, website or subscription service, are leading to additional consumer demands and recall expectations. We're seeing regulators become more active, leading to greater scrutiny, tougher rules and more product recalls. Finally, class action lawyers are creatively seeding disputes.

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