|By Business Wire||
|May 13, 2014 02:23 PM EDT||
ACE Group today announced the launch of a new endorsement to help protect technology companies from exposures resulting from products that are sold and distributed to third-parties. The new ACE DigiTech® and Product Recall Endorsement offers expanded digital technology coverage providing out-of-pocket recall coverage for expenses arising from a technology product recall as well as the costs to repair, restore, or replace the recalled product(s).
Underwritten through ACE Westchester Professional Risk, the company’s excess and surplus lines business, the new ACE DigiTech and Product Recall endorsement offers integrated technology, errors and omissions, privacy liability, and network security liability coverage designed for the unique needs of technology companies. This enhancement also helps to protect the insured’s balance sheet and brand name by reimbursing them for their financial loss resulting from a recall.
“In today’s global economy, the possibility that a manufacturing defect could cause a financially catastrophic product recall is an unfortunate reality. In response to market demand, we are expanding our digital technology product offering to bridge a possible gap in coverage for manufacturers of component parts and hardware for technology companies,” said Mark Wells, Vice President, ACE Westchester Professional Risk. “We are continually working to help protect our clients’ technology products and services, as well as their computer systems, personal information, and confidential third- party corporate information. By offering recall and replacement costs coverage, this new product helps protect our clients’ balance sheet as well.”
“ACE has become a leader in the industry by providing sophisticated solutions to complex insurance issues. This innovative expansion of our digital technology product offering also provides coverage for out-of-pocket recall expenses and allows ACE to extend coverage to companies who must also deal with the costs of a financially debilitating recall,” said Florian Beerli, Senior Vice President, Product Recall, ACE Westchester.
The new ACE DigiTech and Product Recall Endorsement provides coverage for the following product withdrawal expenses resulting from a covered claim:
- The cost of announcements or commercials concerning the recall
- The cost of shipping the recalled product
- The cost of disposal of the recalled product
- The actual cost to redistribute any recalled product
- The costs to repair the affected recalled product
- The cost to produce or acquire a like replacement product
- The cost of unsold finished stock
Product highlights are summaries only; please see the actual policy for terms and conditions. Products may not be available in all locations and remain subject to ACE Professional Risk and ACE Product Recall’s underwriting criteria. To learn more about ACE Westchester Specialty Group’s products and services, please visit our website.
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at www.acegroup.com.