Protecting brand and reputation

Protecting brand and reputation

A large and growing part of the potential damage encountered in a product recall situation revolves around the impact the recall can have on a company’s brand and the associated impact on future sales.

The majority of product recall insurance policies give policy holders access to a crisis management consultant, the value of which cannot be underestimated. Imagine for example the plight of a food manufacturer that has just discovered salmonella in one of its products.

Quick responses are needed to questions around the source of contamination; prevention of the contamination spreading; clear communication with staff; customers, suppliers and the media; liaison with the Food Standards Agency and HSE.

If this does not happen, companies risk losing control of the situation. It then becomes very difficult to manage the crisis, leading to negative publicity, which will have a direct impact on commercial relationships and future sales.

The role of a crisis management consultant is to manage the whole situation and help your business minimise the losses suffered. This is especially important today in the digital age of social media channels and 24 hour news feeds.

In any business there needs to be an understanding of how a crisis would play out. Crisis management consultants can provide onsite crisis scenario training so the business can rehearse how their crisis management team reacts and identify areas for improvement.

For food and drink businesses in the UK, the challenge is to ensure their product recall plans are as robust and effective as the rest of the quality control standards they must adhere to.

Expert advice from an insurance professional combined with carefully chosen insurance cover can protect your business against the loss of profits created by negative publicity following an incident such as product recall (remember the horsemeat scandal), supply chain fraud or even inappropriate actions by a celebrity endorser or a data breach that becomes public.

JLT Specialty Limited  sally_swann@jltgroup.com Tel: 0121 633 3377  www.jltspecialty.com

 

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