Preparing for recalls

Guest Blog Post from Don Adriaansen, TITAN Mobile Shredding

The pace of defective products being recalled is climbing, according to a recent study by Allianz Global Corporate & Specialty. A review of more than 100,000 corporate liability insurance claims from over 100 countries between 2011 and 2016, found that defective products or work is the number one cause of liability loss by total value of claims. In fact, defective products account for nearly a quarter of all claims.

Today risk managers must be readily prepared for such a crisis with recall response plans that are nimble and effective. Discontinued products, manufacturing overruns, obsolete inventory,  off-spec items, promotional merchandise, counterfeit products, and unused or outdated product packaging should have a destruction plan behind it. "Our clients consistently search for and adopt best practices to reduce potential liability, however challenges can persist," admits Don Adriaansen, co owner of TITAN Mobile Shredding, LLC.   Adriaansen alludes to an industrial shoe manufacturer needing to destroy 5500 pairs of shoes in a matter of days. "The shoes were  defective and our client's recall plan included  immediate destruction with our company."

For companies seeking destruction partners, Adriaansen urges risk managers to be vigilant in seeking a reputable, NAID (National Association of Information Destruction) AAA Certified company that fully recognizes their needs. "Improperly discarded products are a source of liability if misused, and, where trade information is put at risk, it can undermine important intellectual property protections," NAID CEO Bob Johnson said.  “Properly destroying outdated, defective, damaged or returned products is just as important as destroying discarded sensitive information."  A uniform manufacturer for utility and oil companies had to destroy over 15,000 uniforms and jackets because their company logo had changed.  "As a utility company serving homeowners, our client followed their product recall plan to ensure the outdated garments could not enter the public domain," Adriaansen said.

In an effort to better align with product destruction procedures, NAID launched a new certification endorsement in late 2017.  TITAN was named the first company to receive the global Product Destruction Endorsement from NAID.  Adriaansen added, "This endorsement gives our clients another layer of confidence that their branded, obsolete, defective or overstocked material is securely destroyed and disposed of properly,"
 
TITAN Mobile Shredding, LLC founded in 2005 and provides secure destruction of documents, records, media, hard drives and products, both with mobile destruction trucks and in their plant. TITAN provides service in eastern Pennsylvania and New Jersey. For more information: www.titanshredding.com, www.naidonline.org
or 215-766-3480.