Chartis has launched limited product withdrawal expense coverage with complimentary loss control services, developed by its commercial casualty division to protect clients against expenses arising out of product liability exposures and claims.
According to Chartis, the new limited product withdrawal expense coverage is offered by endorsement as an enhancement to the companies general liability policies.
The insureds will be reimbursed for expenses incurred through endorsements as a result of product withdrawal or recall, including: transportation and storage costs; and fees for temporary staff; overtime costs paid to insured’s regular, ‘non-salaried’ employees; and expenses incurred during the proper disposal of the product.
The company has also developed a product loss control/claims defense program (PLCDP) that can provide assistance to clients in managing product liability exposures.
The new PLCDP helps to identify sources of exposures to product liability claims, employ efficient management controls, and maximize management’s evaluation and implementation of PLCDP elements.
Christopher McKeon, president of commercial casualty’s commercial risk and excess workers’ compensation divisions at Chartis, said: “The likelihood of a mandated or voluntary product withdrawal or recall is on the rise due to regulations governing product safety.
“In order to manage the effects of a product withdrawal, a sound product liability program is essential for manufacturers, distributors, wholesalers and retailers who may not be able to manage otherwise.”