Global multiline property and casualty insurer, ACE Group, has rolled out a new insurance product offering for fluid, process and power equipment manufacturers in the UK and Ireland which will include product recall.
Besides product recall, the new policy includes a range of cover enhancements, to addresses growing concerns among manufacturers regarding the growing complexity and cost of product recalls.
ACE’s Product Recall Expenses cover will provide UK manufacturers of fluid, process and power equipment products with first party recall expenses including PR and communication costs associated with managing the recall, transportation costs and wages.
Additionally, it will also cover cost associated with hiring of additional staff, rental for extra warehousing space as well as disposal costs, with limits of indemnity are available up to £2m to cover all losses related to one recall.
ACE Group UK & Ireland casualty manager Mark Roberts said, "We believe that product recalls are now one of the biggest threats on a manufacturer’s balance sheet."
"They pose significant challenges for companies, typically with turnover of £5m plus, who are sourcing, manufacturing and distributing internationally," Roberts added.
"In our experience, the costs incurred in a recall can now be so great that companies are frequently unable to survive them."
The insurer said that enhanced product complexity coupled with extended global supply chains that can involve a group of suppliers across many countries mean that product recalls are a significant threat to exporters in the UK and Ireland.
With operations in 53 nations, ACE offers commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients.