Automotive recall exposures have been particularly difficult for underwriters to assess due to the potentially costly notification and repair expense. Manufacturers are obligated to attempt to notify owners of recalled products. A manufacturer’s means of remedy may include the repair, replacement, or repurchase of the vehicle or item of equipment that will correct the safety defect or noncompliance.
Target Risks
- Automotive component part manufacturers (including safety critical parts).
- Can include non-automotive parts provided they are no more than 10% of the total revenues.
- Can consider single contracts where Recall coverage is a contractual requirement.
- Any revenue size can be considered.
- No finished products.
- We can include the non-US domiciled operations of a US parent company.
Markets
- International Non-admitted Carriers
Available Limits
- US$ 500,000 – US$ 10,000,000 any one Covered Incident and in the Aggregate
- Additional $10,000,000 may be available on follow form excess basis.
Deductibles
- Minimum Deductible = US$ 100,000.
- Minimum Deductible for the risk will increase based on estimated revenues.
Minimum Premium
- US$ 25,000
- Worldwide Territory
Coverage
- Section A – Product Recall Expense
First Party Product Recall Expense
- Section B – Product Recall Expense Liability
Third Party Product Recall Expense that you become legally obligated to pay.
- Section C – Impaired Property Expense
Impaired Property Expense that you become legally obligated to pay