Zurich Launches New Product Withdrawal Expense Coverage

Zurich Financial Services Group, North American division has launched a new product withdrawal expense coverage product that protects manufacturers and distributors from voluntary and government ordered recalls. As an endorsement to Zurich’s commerical general liability policies, this new coverage provides reimbursement for removing unsafe or defective products from the market.

Some of the costs of removing a product from the marketplace might include:

• Withdrawal notification
• Overtime pay
• Shipping costs
• 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. Many general liability policies do not cover product recall expenses, but “with Zurich’s new product withdrawal protection, these expenses are covered” Spencer added.

Zurich’s product withdrawal expense coverage falls within their portfolio of special casualty coverages.  These coverages provide general liability and products liability insurance for volatile risks and products that are harder to place.