Ironshore Specialty Casualty has offered its commercial clients a third party product recall cost endorsement as an improvement to its primary general liability coverage.
The financial backing will cover specific costs used by a direct client of the insured, in the event that a recall must be ordered as stated in the endorsement. The coverage works on a first dollar basis and provides a separate limit of $50,000 per policy.
Ironshore’s third party product recall cost endorsement compensates for the insured for appropriate and important costs incurred as a direct result of a product recall for a maximum period of 12 months following the recall action.
The insurer also provides reimbursement for related expenses, like communications and media notifications, cancellation of promotional advertising and retail shelf slotting fees. The coverage extends to the actual costs incurred for responsible disposable of named product, and also the value of the recalled or destroyed product that cannot be reused, handed out or salvaged.
Tim McAuliffe, president of Specialty Casualty, said: “There has been an increase in the number of recalls globally. Ironshore’s new product recall endorsement helps protect our insured in response to unavoidable, costly event-related expenses.”
Ironshore, Specialty, Casualty, Insurance, Reinsurance, Bermuda, North America, Tim McAuliffe