Automotive

Costs of product recall

We specialise in risks incurred by the automotive sector — in particular, insurance of costs of automotive product recalls, including increased costs of the insured’s contracting parties caused by defective products/services supplied, which may be the subject of compensation claims.

We are also involved on our clients behalf, in negotiating the insurance requirements specified in contracts for the supply of components/services for the automotive sector to evaluate them, assess their feasibility and pricing at the earliest possible stage of negotiating the provisions of the contract.

Covered losses

Costs (own and third party) associated with the product recall, including:

  • redistribution
  • repairs
  • disassembly and reassembly
  • sorting and repackaging
  • relating to announcements and publications in the media
  • destructions/disposals
  • recovery and storage
  • transport
  • defective product testing
Key benefits
  • negotiation of high limits and client-specific terms and conditions
  • support in managing risks before an incident occurs
  • the possibility to negotiate insurance requirements specified in contracts for the supply of components/services for the automotive sector, including their value, feasibility and pricing at the earliest possible stage of contract provisions negotiations
  • possibility to negotiate policy terms and conditions of a specific contract

Other insurance risks for companies in the automotive sector that can be covered include third-party liability insurance, including product and service liability, property risks, including insurance of buildings and machinery, the risk of loss of profit (Business Interruption), including from damage to production machinery (Machinery Loss of Profit, MLOP), transport risks (CARGO), insurance of receivables, financial guarantees, including performance bonds, the removal of defects and refunds of advances, etc.