| Trend | Range | |
|---|---|---|
| Product recall |  |
0% to +5% |
The CPSC ruling is expected to significantly increase liability costs for e-commerce platforms, as they will now be directly involved in product safety enforcement.
As for the Boar’s Head recall, while the exact cost is not yet fully disclosed, the financial impact could be substantial. Based on similar food recalls in recent years, the expected cost could be one of the largest uninsured recalls in recent history; this figure could even increase if widespread recalls are enforced, with ongoing loss of profit and reputational damage.
These recent recalls highlight the persistent and evolving risks that insurers face across various industries. As product safety standards continue to tighten and consumer awareness grows, insurers must remain vigilant in managing long-term liabilities. Given the current environment of flattened rates driven by new market competition, now is an opportune time to secure long-term agreements while rates are still favorable. However, with the expectation that rates will increase over time due to emerging risks and evolving regulations, locking in longer-term coverage can help mitigate future cost volatility and provide greater financial stability in the years ahead.
Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
