Zurich develops product withdrawal expense coverage to meet growing needs of manufacturers and distributors
New protection enhances commercial general liability policies
Schaumburg, Ill., May 27, 2008 – Zurich one of the world’s largest property-casualty insurance companies, announced today that its North America Commercial division has launched a new product withdrawal expense coverage, which provides protection to manufacturers and distributors for both voluntary and government-mandated product withdrawals. The coverage is offered as an endorsement to Zurich’s commercial general liability policies.
Zurich’s new coverage provides reimbursement for expenses incurred when a company responds to a known or suspected product defect that could cause bodily harm or physical injury. It covers the associated costs of withdrawing the product from the marketplace. Covered expenses include:
--Materials and production of withdrawal announcements, plus postage or facsimile expenses
--Overtime for regular non-salaried employees, including costs for transportation and accommodations
--Independent contractors and other temporary employees
--Transportation, shipping or packaging
--Warehouse or storage space
--Proper product disposal
“A product withdrawal can result in a range of expenses many manufacturers and distributors may not be prepared to absorb,” said Bruce Spencer, executive vice president of Zurich Specialties’ Casualty group. “In fact, many may not even realize that traditional commercial general liability policies do not cover these expenses. At a time when a company is facing a potential crisis, it can be confronted by a host of unanticipated costs. With Zurich’s new product withdrawal protection, these expenses are covered.”
Product withdrawal expense coverage is the most recent addition to Zurich’s portfolio of special casualty coverages, which provide general liability and products liability insurance to address harder-to-place and volatile risks. It is available as an enhancement to the excess & surplus marketplace through approved Zurich Special Casualty wholesalers.
About Zurich Financial Services
Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries. In North America, Zurich (www.zurichna.com) is a leading commercial property-casualty insurance provider serving the global corporate, large corporate, middle market, small business, specialties and programs sectors.
Steve McKay, Zurich