Lightning really can strike twice!
Toyota announced this morning that they are recalling 2.7m vehicles. This latest move was prompted by the discovery of faults in the steering wheel and water system of nine Toyota models. It follows close on the heels of a 7m vehicle worldwide recall just four weeks, and the infamous 12m vehicle recall back in 2009, which seriously damaged its reputation for quality.
No reported accidents have been registered as a result of the fault with the recall instead being issued as a precautionary measure.
Product Recall insurance reimburses costs incurred to recall and replace a product in the marketplace with a safe one. It also provides expert assistance and advice during this process.
Product recalls are occurring more frequently and often receive media attention. A poorly handled product recall can have a catastrophic impact upon brand reputation, an organisation’s assets and even their ability to continue trading. Whilst a recall extension under a Product Liability policy includes some protection, it does not always reimburse the insured for their own costs incurred to withdraw and replace a product.