Product recalls have significantly increased in frequency and cost in recent years, causing serious financial and reputational risks for small businesses.
However, many small businesses have been unable to access sufficient coverage through existing market offerings. Recognizing this unmet market need, ACE Westchester announced the introduction of ACE Recall Plus for Small Business, which is unique in the industry because it offers customized product recall coverage for small businesses.
ACE Recall Plus for Small Business is available to companies with revenues of up to $25 million, and allows policyholders to select coverage based on their needs and obligations.
ACE Westchester’s expanded product recall coverage options protect the insured’s balance sheet by reimbursing for covered financial losses resulting from a recall. This coverage also provides advisory services that can help small businesses respond quickly and effectively to protect their brand name.
"Product recalls can be complex and expensive for any business, particularly for a small business, and product recalls are more costly now than ever before," said Florian Beerli, Senior Vice President, ACE Westchester Product Recall.
For the small business segment, ACE Westchester now offers prepackaged solutions with lower self-insured retentions and lower limits than are typically available in the market. ACE Recall Plus for Small Business offers three distinct insurance policies:
Component Parts: Reimburses the financial loss from a covered insured event resulting from the use of component parts in the general manufacturing, electronic, medical device, automotive and aviation industry.
Consumable Products: Reimburses the financial loss resulting from a covered insured event in the food and beverage, cosmetics and pharmaceuticals industries.
Consumer Goods: Reimburses the financial loss resulting from a covered insured event in the areas of appliances, electronics/electrical, clothes, furniture, household goods, children’s products, outdoor goods and products, sports/exercise equipment and products.
ACE Westchester’s small business policyholders will have access to product recall consultants on a pre- and post-incident basis. These flexible, customized and tailored consulting services, also unique to ACE Westchester, provide the small business owner with a business partner who knows both the pitfalls and implications of product recalls and insurance coverage.
ACE Westchester is part of ACE Group, which is one of the world’s largest multiline property and casualty insurers.