Endorsement mitigates product recall costsPosted On: Jul. 13, 2016 12:00 AM CST
Ironshore Specialty Casualty said Wednesday that it will offer third party product recall cost endorsement, an enhancement to its primary general liability coverage form.
The endorsement covers specified costs caused by a direct customer of the insured when a recall must be ordered. The coverage applies on a first dollar basis and provides a separate limit of $50,000 per policy, New York-based Ironshore Specialty said in a statement.
Third party product recall cost endorsement compensates the policyholder for costs that resulted from product recall for up to 12 months after the recall. Ironshore provides reimbursement for communications and media notifications, cancellation of promotional advertising and retail shelf slotting fees. Coverage includes the actual costs for responsible disposal of named product and the value of the recalled or destroyed product that cannot be reused, distributed or salvaged, according to the statement.