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Hanover expands product recall coverage


The Hanover Insurance Group Inc. has expanded its product recall coverage to include additional expenses and liability coverage.

Coverage extension options now include repair, replacement or repurchasing coverage, customer’s lost profit coverage and good faith advertising coverage, the insurer said Wednesday in a statement.

In addition, Hanover now offers product recall liability coverage, which differs from its general liability insurance policy in that it offers protection if a company is sued for costs associated with a recall and covers claims for damages and legal representation costs, according to the statement.

The company’s product recall coverage currently offers reimbursement for expenses incurred to remove a defective product from the marketplace, including shipping, transportation and disposal, as well as the cost to notify customers, according to the statement, and can also help cover the cost of inspecting and testing defective products to determine if a recall is warranted.

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