► Products Liability - Products Recall

Products Liability coverage protects the manufacturer, distributor, or retailer from liabilng out of the manufacture, distribution, or sale of unsafe, dangerous, or defective products. The coverage is activated when the product leaves the premises of the policyholder. Completed Operations coverage takes effect when the policyholder’s work is finished or abandoned. If the product is not finished or only one aspect of the job is done, coverage would be provided as part of the premises and operations coverage.

Products Recall coverage is designed to provide coverage for costs associated with notifying customers, the cost of shipping and disposal of the product, extra warehouse expenses and the cost of extra personnel required to conduct the recall. It also includes coverage for cost to repair, refund, replace and ship the product back to customers as well as any damages to a third party resulting from the recall. Income loss and the cost to rehabilitate brand name and reputation might be available.

The coverage usually has two parts. Part I covers First Party Expenses and Part II covers Third Party Liability. Most companies sell finished goods under their own label, but have a third party between them and the consumer. They are subject to both, First-Party and ThirdParty exposures. The Insured has a choice of coverage, Part I, Part II, or both. The policy does not cover any sanctions levied by a Governmental Agency.

For more information, please do not hesitate to call one of our experienced staff members.