Due to the discovery of salmonella in the company’s products, a food manufacturing company has recalled all of its products produced in the company’s factory.
The bacteria was discovered in a self-audit carried out by the company, which quickly informed the Ministry of Health. In a joint decision, it was decided to stop production at the factory, and to perform a recall. At this stage the public was informed of the recall.
Since it was a recall of products infected with bacteria with a significant potential for damage, it was necessary to carry out a destruction. The products were collected at the manufacturer’s logistics warehouse, and the destruction process began. At this point it became clear that the damage caused to the company amounts to tens of millions of dollars.
The insurers appointed Mclarens crisis management to examine and assess the damage, which in turn, as mentioned, appointed Mclarens Israel to carry out the inspection and discover the source of the contamination and assess the extent of the damage.
About a month after the occurrence, the insurers paid an advance on account of expenses incurred.
A final opinion on behalf of the adjusters was submitted about six months after the occurrence following an appointment of the forensic accountant to examine the occurrence’s financial losses.
Within a few weeks and while avoiding inevitable expensive litigation, an indemnity settlement was quickly reached.
