Product Recall

Product Recall

Aon-COFCO is part of Aon plc’s network as one of the leading global insurance and reinsurance company, providing best-in-class insurance and risk management solutions. In China, Aon-COFCO possesses industry expertise in auto parts, food and medicine, household appliances and hardware tools industries to provide product recall service to vendors all over the world.

Risk of Product Recall

In this day and age, the manufacturing and selling of goods touches every aspect of society from factory employees to end consumers. Since the emphasis is always put on the protection of consumers’ rights and interests, product recall systems have been recognised and spread worldwide after being set up by U.S. government in the 1960s. Europe, Australia, Japan and many other developed countries have established mature recall systems as well.

Supervision from these governments, especially in U.S. and Canada, has played an increasing role in the era of global trade as more export companies have recall risk exposures. As our global economy becomes more interdependent, risk exposures will continue to grow and organisations’ will need product recall solutions to respond to their risks.

Compared with the routine recall endorsement based on product liability insurance, independent recall insurance allows organisations’ to file claims as potential risks are found, while recall endorsements may only go into effect after the loss occurs. Our risk management experts help the insured to build a recall plan that provides detailed procedures should a recall event occur. At the same time, our risk product recall experts will work with your team to minimise the negative impact on your brand and market share.

Product recall insurance protects the interests of the following parties:

  • Manufacturers
  • Packagers
  • Wholesalers
  • Retailers
  • The whole supply chain

Insurance Coverage

Coverage of common products recall
Product recall insurance will pay the expense of recall which caused by defect or potential defect in the insured products which may lead to bodily injury or property damage, including:

  • Cost of notification, transportation, storage, manpower, investigation and inspection, destruction or resale, extortion, public relation consultation, or the other basic recall expense agreed by the insurer
  • Cost of repair, replacement and return
  • Cost of lost market share and profit

Coverage of Auto Parts Recall

  • Product Liability
  1. – Legal liability for bodily injury or property damage of the third party
  2. – contamination liability
  • Product Guarantee
    The insured is indemnified for the costs of removal, recovery, repair, alteration, treatment or replacement of any product (or part thereof) which fails to perform the function for which it was manufactured, designed, sold, supplied, installed, repaired, dispatched or delivered by or on behalf of the insured.
  • Financial Loss
    The insured is indemnified for damages and costs and expenses arising as a result of any financial loss which is incurred by customers or third parties as a result of any product (or part thereof) which fails to perform the function for which it was manufactured, designed, sold, supplied, installed, repaired, dispatched or delivered by or on behalf of the insured.
  • Product Recall
    The insured is indemnified in respect of recall expenditure incurred for the recall of products (or any part thereof). The insurance takes effect if it becomes necessary to recall products because their use or consumption (or continued use or consumption) may cause the insured to incur a legal liability.

Remark: Policy coverage is based on proposal details

Why Aon-COFCO Product Recall?

In the field of product recall, Aon-COFCO leverages of the rich global network and unprecedented global market access of Aon. Aon-COFCO helps our clients to understand the full scope of their product recall risks, minimise recall expense, and help ensure the smooth development of overseas business.

Wren Xi

Tel: (86) 21-3865 8255

Email: wren.xi@aon-cofco.com.cn

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