Lexington Insurance, a Chartis company, has expanded its products liability insurance coverage to address the increasing risks associated with product recalls.
Lexington said that through a relationship with the crisis management unit of WorldSource, a division of Chartis, Lexington insureds will now have the option to purchase protection against product withdrawal or recall expenses, including those from claims that allege loss of profit resulting from a covered product recall event.
According to the Lexington, the coverage enhancement, available by endorsement, will provide Lexington’s insureds with reimbursement for covered expenses incurred as the result of a product withdrawal or recall.
The expenses to be covered include: costs of notifying customers of a product recall; costs for shipping and disposal of the recalled product; costs for extra warehousing of the recalled product; and costs associated with the refund, repair or replacement of a substitute product.
In addition, the endorsement will provide reimbursement for covered third party expenses, including defense costs incurred by third parties as the result of claims arising from the product recall.
Lexington Insurance assistant vice president Bob Nevin said Lexington and WorldSource provide a comprehensive solution for clients who seek enhanced product withdrawal coverage.