The three basic factors that underwriters look at, says Bill Harrison, managing director of Aon’s Crisis Management practice, are procurement, quality control, and crisis management. Where do ingredients, raw materials, or parts come from? What steps does the company take to ensure their quality? And is the company prepared to handle it if something untoward happens?
Triggers include malicious product tampering, accidental contamination, and product extortion. Depending on the industry, he adds, other triggers can include governmental recall–which is not available all over the world, just in certain countries–and adverse publicity.