Posted on 11 Jan 2011
Lexington Insurance Company, a Chartis company, today announced that it has expanded its products liability insurance coverage to respond to the increasing risks associated with product recalls.
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.
“As the U.S. regulatory environment continues to evolve, greater emphasis will be placed on food and durable goods safety, which underscores our clients’ need for recall protection,” said Denise Balan, Division President of WorldSource’s Crisis Management unit.
Available by endorsement, this coverage enhancement provides Lexington’s insureds with reimbursement for covered expenses incurred as the result of a product withdrawal or recall. These expenses 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.
Additionally, this innovative endorsement provides reimbursement for covered third party expenses, including defense costs incurred by third parties as the result of claims arising from the product recall.
“Lexington and WorldSource are pleased to provide a comprehensive solution for our clients who seek enhanced product withdrawal coverage,” said Bob Nevin, Assistant Vice President of Lexington Insurance Company.