Archive July 2009

Product Recall

30/07/2009 in Public Liability Insurance

In 2006 Cadbury’s recalled one million chocolate bars as a result of a contamination at its Marlbrook plant. In spite of all its rigorous quality checking, small traces of salmonella entered the manufacturing and processing chain.

The contamination was caused by a leaking pipe at Cadbury’s Malbrook plant, near Leominster, Herefordshire. The leak was discovered in January 2006 and subsequently samples were sent to an independent laboratory for analysis and a stem of salmonella was identified. As a result, Cadbury’s had no alternative but to recall all the bars suspected of contamination.

This cost Cadbury’s millions of pounds. The frequency of recalled goods is increasing and it now seems most editions of newspapers carry a product recall notice. This is not because quality standards have fallen but because safety standards, consumer demands and controls have increased.

If a business becomes aware of or suspects its product has a defect that could cause harm, it has no choice but to recall it at great cost. No insurer would protect a business if the goods were knowingly left on the market and then caused injury or damage. Directors may be held personally responsible if they allow unsafe products to remain on the market and businesses face possible prosecution, or fines, from regulators as a result.

A defect may be caused because of a faulty component, raw materials not up to specification or an ingredient that is contaminated before delivery. In these cases the supplier, manufacturer or importer may be liable for all the recall costs and be subject to claims for damages or loss of reputation. This can be a frightening prospect for already squeezed suppliers.
All these issues have insurance implications. Cover may be available against the cost of a product recall and this should be seriously considered by businesses in the retail consumer chain and investigated by others involved in the supply of volume goods where recall costs could be high. The number of insurers prepared to provide cover is low but sensible businesses, with our help, should weigh up the cost against the risk and then make a business decision.

Are you covered for Product Liability?

If you are in the supplier chain in any sector and are concerned if you provide a faulty component, product or ingredient, there is a possibility that your Product Liability policy could offer some protection. However, this is a complicated issue and if you are concerned you should contact us as soon as possible. We can assess the situation and make suitable recommendations as to the level of cover required and whether the limits already in place are adequate for any potential exposure.

Insurance can play an important role in ensuring that a sour taste does not remain too long, so if you have any concerns, are in any doubt about your existing cover, or require cover, please do not hesitate to get in touch.

Macbeth Achieves Chartered Insurance Broker Status

21/07/2009 in Press Room

The Chartered Insurance Institute has awarded the prestigious ‘Chartered Insurance Brokers’ title to Macbeth, one of Reading’s leading providers of insurance advice and support.

Chartered status is an exclusive title only awarded to firms which meet rigorous criteria relating to professionalism and capability. All Chartered Insurance Brokers commit to the CII’s Code of Ethics & Conduct reinforcing the highest standards of professional practice in their business dealings.

Macbeth Insurance Brokers specialises in providing independent, professional advice on all types of insurance for businesses and affluent individuals.

Paul Macbeth, Managing Director, who holds the individual Chartered Insurance Broker title, says that securing Chartered Insurance Brokers status is a landmark for his company: “Our business has been built by providing exceptional customer service in an industry which isn’t always renowned for doing so, and we have always prided ourselves on being very professional in everything we do. To receive external recognition in this way is fantastic and it compliments our existing Investor in People accreditation. As Chartered Insurance Brokers, we can signal our commitment to providing the highest levels of service and advice to our customers.”

To date, only some 50 firms have achieved Chartered Insurance Brokers status, indicating that this is a highly exclusive and prestigious award reserved for the leading firms of the broking industry.

For further information, contact Paul Macbeth on: 0118 9452 944

Pop memorabilia market still strikes a chord with investors and collectors alike

09/07/2009 in Fine Art and Antiques

London, UK – Ahead of tomorrow’s (July 1) rock and pop memorabilia sale at Christie’s, Robert Read, collectables expert at specialist insurer Hiscox, comments:

“This pop memorabilia sale is likely to be spirited as particular performers will always drive demand and prices upwards. The Beatles are a great example of a band that, in terms of buying or selling, are to memorabilia what Picasso is to paintings.

The death of Michael Jackson is boosting the market for anything Jackson-related. That ticket holders for the cancelled concerts are being offered the chance to buy the actual tickets themselves as an alternative to a refund, is a real sign that the pop memorabilia market has matured significantly. Ten to 15 years ago such an option would have been inconceivable.

“Lot 54 in Christie’s sale which is a photograph of the Jackson Five dedicated and inscribed by the band members, has a guide price of £400-£600 and I would expect it to go for much more.