The Hanover expands product-recall coverage

The Hanover Insurance Group has expanded its product-recall coverage to include additional protections for manufacturing companies.

“We’re committed to continually developing solutions and enhancing our capabilities to provide our agents with ways to better protect and serve their customers,” said Scott Grieco, president of middle market at The Hanover. “The frequency of recalls combined with the potentially staggering financial implications puts manufacturers at risk. In assessing some of these risks, it was clear there was a need in this market for an expanded insurance solution that could deliver protection for the diverse needs of this industry.”

The Hanover’s product-recall insurance coverage offers reimbursement for the expense of removing a defective product from the market, including the costs of shipping, transportation and disposal. It also covers the notification of customers and helps cover the cost of inspecting and testing defective products to determine if a recall is necessary.

The Hanover also offers optional coverages to enhance manufacturers’ protection:

• Repair, replacement or repurchasing: Covers the cost of repairing a defective product, replacing it with a similar one, or to repurchase the product or reimburse the customer.
• Customers’ lost profit: Protects manufacturers when a product recall damages customers’ ability to deliver their own goods.
• Good-faith advertising: Covers the cost to help repair a damaged reputation through advertising, social media and public-relations services.

The company also offers product-recall liability insurance, which protects a company if it is sued for costs associated with a recall.