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  • What commissions do I receive?

    Up to 10%, depending on the size of the account.
  • How long does it take to get a quote?

    We require 10 days lead time. We can rush if needed!!!
  • Does the recall need to be Government Sanctioned?

    No, coverage provides for the recall, removal, recovery or disposal of your product from a third party due to a Covered Incident. There is no requirement for Government involvement nor does there need to be a formal announcement.
  • What is a Covered Incident?

    The use or consumption of your product has resulted in or poses the danger of causing bodily injury or property damage. This trigger can be endorsed to include impaired property.
  • What limits are available?

    Product Recall can be issued with limits of $500,000 to $10,000,000. Coverage A and Coverage B can be purchased separately with different deductibles and limits. Or, they can be purchased as a combined limit with a single deductible and participation requirement.
  • Can the policy be enhanced?

    There are enhancements available: Worldwide Coverage - Amends Coverage Territory to include all parts of the world, excluding any jurisdiction in which this policy may be prohibited by statute, regulation or local laws. Impaired Property - Amends Coverage Incident to include Impaired Property for Coverage B. Cost to Refund, Repair or Replace - Amends Coverage A RRR – coverage includes the following which applies to the recall expense portion (Coverage A) of the policy: • Total amount of refunds given to purchasers of the product • Cost to repair the affected product and make it merchantable along with the cost to return it to the purchaser • Cost to replace the recalled product with a substitute. • Cost of unsold finished stock still on hand if it can’t be treated so as to render it marketable RRR including Business Interruption Expenses – coverage includes the following which applies to the recall expense portion (Coverage A) of the policy: • Total amount of refunds given to purchasers of the product • Cost to repair the affected product and make it merchantable along with the cost to return it to the purchaser • Cost to replace the recalled product with a substitute. • Cost of unsold finished stock still on hand if it can’t be treated so as to render it marketable • Business interruption costs to include gross earnings + continuing expenses over the 12 months following the recall (25% sublimit on BI) Government Recall expands the trigger to the policy for both Product Recall Expense and Product Recall Liability coverage’s to also include recall by a relevant regulatory authority because of potential bodily injury or property damage from the use or consumption of the product. Ultimately, it is the notion that the government can order a recall based on the potential of bodily injury or property damage rather than the actual existence of bodily injury or property damage. Obviously, this is a much lower bar to cross. The addition of government recall adds this additional trigger to both of the sections of the policy.
  • What is the Impaired Property Endorsement?

    The Impaired Property Endorsement extends Coverage B to include impaired property. Impaired property means tangible property, other than the insured's product, that cannot be used or is less useful because it incorporates the insured's product that is known or thought to be defective, deficient, or inadequate if such property can be restored to use by the repair, replacement, adjustment or removal or the insured's product. Impaired Property is a major exposure of any component or ingredient manufacturer. The resulting damages are similar to product recall claims. The major difference is that while impaired property is less useful, it does not necessarily cause bodily injury or property damage or pose an imminent danger of bodily injury or property damage. The Impaired Property Endorsement was developed to meet the needs of component manufacturers that needed broader coverage than provided by the product recall trigger of bodily injury or property damage.
  • What Deductible/SIRs are available?

    Our standard deductible is $25,000, but we will be happy to provide you with pricing for higher deductibles. Any retention over $25,000 for Coverage B is quoted as a Self-Insured Retention. Since most insured’s do not have any coverage for product recall/impaired property exposures, their current retentions are unlimited. Many customers have elected high retentions to lower premiums while obtaining limits for truly large losses.
  • What is Participation?

    You may share Coverage A expenses in addition to the deductible. The standard participation is 5%. The participation percentage only applies to Coverage A. There is no participation percentage applicable to Coverage B.
  • What are the costs associated with Product Recall?

    Product recalls can involve numerous expenses including but not limited to: • 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 • The cost to repair, refund or replace and ship the product back to the customer • Damages of a third party resulting from the recall • Income loss and the cost to rehabilitate brand name and reputation Product Recall helps limit the negative financial impact of a product recall.
  • What does Product Recall cover?

    The policy has two parts, Coverage A, First Party Expenses and Coverage B, Third Party Liability. Coverage A covers the Direct Expenses of the Insured associated with the recall, this includes: • Notification and communications • Shipping • Actual cost of disposal of the products • Warehousing/storage space • Extra personnel Coverage B covers damages of a third party sustained due to a product recall attributable to your product. It covers the insured's legal obligation to pay compensatory damages. This includes but is not limited to: • The recall expense of any third party for the recall of any product that incorporates your product including the cost to repair or replace such product • The business interruption losses of others resulting from the covered incident • The cost to repair or rehabilitate brand reputation • The additional cost to purchase substitute goods to replace your product(s) Product Recall does not cover Bodily Injury or Property Damage form products involved in a recall.
  • Which coverage does my client need?

    Most companies need both. Any company that sells finished goods under their own label has a greater exposure under Coverage A than Coverage B. You will handle the recall in most cases directly incurring the Recall expenses. However, if there is a third party between your company and the ultimate consumer, you also have an exposure under Coverage B because that third party can claim loss of income or reputation due to the recall. Similarly, any company that manufactures a product that is ultimately sold under a third party's brand name, whether it be a component part or the finished product has a greater exposure under Coverage B. You may or may not be involved in the decision to recall or involved in the actual recall itself, but can still be held liable for damages by the ultimate seller. However, Coverage B would not cover any direct expenses you could incur such as replacement parts.

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