Total Recall: Product recalls (and coverage requests) on the rise

News, Property Casualty 360°July 2016


Partners Simon Oddy and Steve Rosenthal spoke with Property Casualty 360° about the recent increase product contamination and recall events, and the coverage requests that accompany them.

As appeared in Property Casualty 360°, July 1, 2016.

By: Phil Gusman

In June, Hostess announced a recall of more than 700,000 cases of Ding Dongs, Chocodiles and various doughnut products in the United States and Mexico. The reason? Certain lots of its flour contained undeclared peanut residue. It's estimated that more than 3 million people in the U.S. alone report being allergic to peanuts, tree nuts or both.

Talk about a Zinger.

The snack-cake maker, however, is hardly alone: From the auto industry to food manufacturers, product recalls have been appearing in the news with increased frequency. A quick Google News search of headlines over the last month turns up pages of results on recall announcements, the vast majority occurring in the food industry.

“The number of FDA [Food and Drug Administration] Class 1 recalls is clearly on the rise,” says David Bresnahan, client executive at The Horton Group in Orland Park, Ill. The FDA defines a Class 1 recall as “a situation in which there is a reasonable probability that the use of or exposure to a violative product will cause serious adverse health consequences or death.”

Simon Oddy, a partner with New York-based RGL Forensics, maintains that the 2011 passing of the Food Safety Modernization Act (FSMA) has accelerated the pace of recalls by giving the FDA added authority to trigger them. “Essentially, the FDA has increased authority over control and monitoring of the food industry—and if you’re not in compliance with some new regulations, that increased authority allows the FDA to interrupt the supply chain” with either a suggestion of a recall or a mandatory recall, he says.

Read the rest of the article at Property Casualty 360°.

Related News and Insights


June 2017

Employee fraud: how should you respond to a tip-off?

Do you know what a "typical" corporate fraudster looks like? What red flags should you be looking for? And - most importantly as a risk manager - what should your first actions be if potential fraudulent activity is brought to your attention?
These were just some of the questions addressed by RGL Forensics at an Airmic Academy which delved into the serious but little-understood subject of investigating employee fraud.

iStock 628481600 magnifying glass calculator spreadsheet


June 2017

Forensic Accounting: Is it Really Lost Income? (Part 3)

In California Lawyer, Mary Furst and James McCurley discuss how forensic accountants can assist counsel to dig deep when preparing—and contesting—claims of economic loss.


June 2017

Will the Next Government Dismantle the SFO?

Here John Burgar, Head of Investigations at RGL Forensics, talks to Lawyer Monthly about the current work of the Serious Fraud Office (SFO) in the UK, and the current government agendas for confronting fraud crimes across the nation.


June 2017

WannaCry: The lessons learned for insurance

The recent WannaCry ransomware attack has put into sharp focus the daily operational risks that face both the public and private sectors. The Press spotlight in the UK was understandably on the NHS, but the effects were felt by the private sector too and the cyber insurance market has responded accordingly. Indeed, the nature of the attack – its timing (on a Friday), its geographical reach over a broad range of industries and its seeming pinpoint on older operating systems – raises various issues for cyber insurers.

Looking for more?

Get in touch with our London Office

07:54 pm

Local time