Rinkos Insurance Solutions is a market leader in insurance broking. We help clients better quantify and manage risk to survive and thrive.
Being a Network Partner of one of the largest insurance broking companies, we have the capacity to handle a broad range of risks on either a direct or a wholesale basis.
Drawing on solid relationships with London and global markets we’ll do our utmost to find the right solution for you.
Product liability insurance provides essential protection for companies involved in designing, distributing, manufacturing, and selling products. It offers coverage when a third party suffers harm due to the use or consumption of your product.
Countless scenarios can result in a product liability claim. Poor labeling, unsafe design, inconsistent manufacturing, or misrepresentation of a product can lead to a lawsuit. Even if the accusations are false, a company needs sufficient coverage to cover necessary defense costs.
Even if you are confident in the quality and safety of your product, an unexpected malfunction, contamination, or even misuse can still make you liable if a third party files a lawsuit against your company.
A product recall involving a large company often attracts media attention. In some cases, recalled products are not necessarily harmful but can still cause significant customer dissatisfaction. If a product recall is initiated due to a health hazard, it can lead to multiple claims against the company and damage its reputation.
A recall can be a devastating process for any company. Additional shipping and warehousing costs, product testing and investigations, as well as overtime for workers, can be extremely expensive and financially crippling, even for a large company.
A third party may discover a serious, potentially life-threatening issue with your product, so it is in your best interest to always be prepared for a potential lawsuit. Not every case of dissatisfaction with delivered goods will require a product recall, but if a company fails to report a serious safety issue, it can face significant criminal and civil penalties.
It is wise for a company to issue a voluntary recall to prevent further distribution of a defective or potentially dangerous product. If it fails to do so, regulatory authorities may conduct an investigation and issue a mandatory recall.
Many businesses do not realize they lack the necessary coverage for a product recall. Product liability insurance only covers claims against a company’s products, including legal defense costs and potential judgments or settlements. However, a product recall can have a significant financial impact on your company. Even if you are confident that your product is safe, protecting yourself with product recall insurance is a prudent decision.
A product recall can cause serious financial damage to any business, but some complex products are more likely to be recalled than others. Vehicles, toys, medications, and cosmetics frequently fail to meet certain standards and require recalls, and even food products are vulnerable to these issues. In some cases, external factors can trigger a mandatory product recall. For example, dairy product companies in Lithuania were forced to recall more than 300 tons of milk due to contamination caused by a fire at a tire recycling factory in Alytus. The need for a product recall can arise unexpectedly, so securing proper protection is essential to minimizing the financial impact on your company.
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Rinkos Insurance Solutions is a licensed insurance broker regulated by the Bank of Lithuania (License No. 0060). For additional legal information please visit the Terms and Conditions section.
