Abbott Laboratories is a multinational healthcare company that is a major supplier of medical devices and nutritional products. In February of this year, the company came under intense heat, when a deadly bacteria was found at one of its baby formula manufacturing plants in Michigan.
Following this, the company launched a global recall of its products that also seeped into the Indian market. In fact, Abbott’s India unit completed the recall of US-imported baby products in the country just last month.
With a recall at such a monumental scale, Abbott Lab. has reasonably suffered some heavy losses– what with the factory shutdown, lost sales, compensation to consumers, and on top of all that– a tarnished reputation.
The pharmaceutical, FMCG, and automotive industries are some of the most recall-vulnerable businesses. And that’s why they often opt for Product Liability Insurance.
Product Liability Insurance comes with a special add-on that covers certain financial losses suffered by a business due to product recalls. This includes the cost of product withdrawal, transport, disposal, as well as any compensation that the business becomes liable to pay to the affected consumers.
Product Liability Insurance is a beneficial policy for almost all manufacturing businesses, including those in the electronics and equipment industries that frequently deal with product defects.
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