| Colemont Insurance Brokers has designed an insurance program to address the product recall, withdrawal expense, and recall liability exposures of smaller and mid-sized manufacturers of nonfood products with replacement value of less than $100, including items like small appliances and office supplies.
“This coverage simply wasn’t affordable for smaller and mid-sized manufacturers. They were given little option other than to self-insure and carry the exposures themselves,” said Bernie Steves, senior vice president for Colemont.
He said that more than 300 recalls by the Consumer Product Safety Commission in 2009 and greater responsibilities placed on manufacturers by the Consumer Product Safety Improve Act of 2008 means these companies face greater exposure than they have in the past.
“Automotive recalls and Salmonella outbreaks get a lot of media attention, but virtually every product has some level of exposure that can leave a company vulnerable,” said Steves.
Source: Colemont Insurance Brokers |
