In an age of rapid globalisation and heightened consumer awareness, product liability risks loom large, posing significant challenges to businesses.
While massive conglomerates may have the financial reserves to weather substantial legal damages, small and medium-sized enterprises (SMEs) stand perilously close to the edge, often with less cushioning against severe financial storms.
Recognising this vulnerability, it becomes paramount to delve into tailored insurance solutions.
The SME liability landscape
The business world is replete with cautionary tales highlighting the perils of underpreparedness.
Peanut Corporation of America (PCA)
Located in the heart of Georgia, PCA was a critical supplier to many snack food manufacturers.
When a salmonella outbreak traced back to their facilities, it wasn’t just a health crisis; it unveiled a chain of negligence.
Lack of internal checks, poor facility maintenance, and evidence suggesting the company knowingly shipped contaminated products intensified the situation.
The subsequent litigation, accompanied by severe reputation damage, made their previous $25 million annual revenue seem minuscule compared to the financial and societal costs…
