The financial impact of product recalls can be highly damaging. In many cases, product recall expenses are excluded under standard product liability insurance policies and so little, if any, cover is provided for a client’s loss.
Liberty’s PRplus insurance policy offers broader protection. Additionally, our PRplus insurance policy can be varied to meet the specific needs of an organisation, including additional cover (such as Product Guarantee) and limits to match exposures.
At a glance:
- Broader cover than standard extension to general liability policies
- Losses include:
- Recall costs (both retailer and customer)
- First party recall costs
- Replacement, refund and repair costs
- Business interruption
- Rehabilitation expenses
- Product extortion costs
- Consultants and advisor costs
- Customised for individual client’s needs
- Target market includes (but not limited to):
- Toys and bicycles
- Electronics
- Whitegoods
- Clothing
- Automotive components
- Home and office furniture
PRplus Automotive Component Recall insurance
In the event of a safety or non-compliance issue with automotive components, businesses that manufacture, import, distribute or sell defective components, are responsible for taking recall action. A recall event can be very expensive, and suppliers of these automotive components will be financially impacted.
Liberty offers a PRplus Product Recall policy for automotive components. Customised for individual client’s needs, and with all the benefits of a PRplus product, Automotive Components Recall insurance also includes cover for exports to the USA and Canada, the ability to include product guarantee and covers critical components.
In addition to protection against losses such as recall costs (both retailer and consumer), replacement, refund and repair costs, and consultant advisor costs, PRplus Automotive Components Recall insurance also provides protection against third party financial loss and defence costs.
The costs associated with an automotive component recall event:
- Repair and replacement
- Removal and reinstallation
- Logistics and transportation to withdraw the product from the market
- Additional labour and staff to effect the recall
- Product inspection
- Redistribution of restored products
- Public relations, including media releases and mass communications.
Target audience:
- Manufacturers and suppliers of parts and systems
- Aftermarket industry
