Lloyd's broker Houlder Insurance Services is a member of the Trading Standards Institute's new Product Recall Taskforce.
The taskforce, comprising the Department of Trade and Industry, local authorities, product safety groups and general business representatives, will discuss issues relating to product recall.
One of the group's focuses will be on the strategies set up by various industry sectors to manage a successful product recall, and the improvements that can be made.
Houlder Insurance Services Special Risks associate director Mark Quinn said nearly 50 recall notices were posted on the Trading Standards website in the second half of last year.
"In today's consumer-driven, litigation-conscious society, the sale of faulty or defective products has the potential to expose a business to the significant costs associated with recall, rectification or replacement and even legal actions, costs which fall outside the scope of most product liability policies," Quinn said.
Houlder provides product guarantee, financial loss and recall insurance to many well known companies.