Would your business survive a product recall?

March 25, 2021

It is important to remember that Product Liability is not the “catch all” policy (Pilkington v CGU (2004)). With our clients in mind, our Product Recall policy has been carefully crafted to assist businesses like yours through recalls.

Product Liability generally does not include –

  • The cost of replacing the Assured’s product
  • The cost of recalling a defective product
  • Any financial losses not involving property damage and/or bodily injury

There are an ever-increasing number of recalls, for example, last year BMW recalled 268,000 diesel engine cars in the UK over a potential fire risk, Toyota issued two actions for 3.4 million vehicles worldwide, while Volkswagen and SEAT recalled the PoloArona and Ibiza respectively over a malfunctioning rear seatbelt buckle. In 2020, 353 passenger car recalls were announced, which affected 248 models of 38 carmakers.

Manufacturers are increasingly demanding by contract that their suppliers have recall insurance. It is important to remember that manufacturers of end products will expect their component part supplier pay for their customers’ recall cost; these can include (but is by no means an exhaustive list):

  • Advertising in the national press
  • Setting up and running a call centre
  • Sending letters to owners of vehicles/products
  • Supplying replacement components
  • Labour time to remove and replace faulty components
  • Destroying and discarding faulty components in line with relevant Laws
  • Temporary storage costs
  • Transportation costs

Claims Management

In the event you need to make a claim, our dedicated claims team will handle the claim on your behalf and provide as much support as you need. We also have the authority to instruct loss adjusters, on behalf of underwriters, ensuring you have the highest quality service from the very first moment you are notified of a potential incident that may give rise to a claim.

What industry sectors do we work with?

All businesses face unique risks and there are a range of Recall policies to suit various industries. Some of the industries we work with include:

  • Automotive component parts/assemblies
  • Bearings
  • Industrial fasteners
  • Electronic components
  • Metal pressings
  • Plastic and metal mouldings
  • Steering/Brakes
  • Architectural structures
  • Glassware
  • Medical devices/instruments
  • Household goods

How we can help

For more information on our Product Recall insurance offering, please click here.

Our dedicated team have almost 30 years of experience in this industry and have dealt with these risks internationally. Specialising in Product Liability, Product Guarantee, Financial Loss, Product Recall Insurance and Contaminated Product Insurance, we have a plethora of knowledge to assist you in arranging this type of cover so please do not hesitate to get in touch.

 

Sources:

Car-Recall.eu 4th January 2020

Auto Express – Hugo Grifiths 2 June 2020

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