Product Recall

Aviation Product Recall

Aviation Product Recall (USD20M Limit)

Overview / Coverage / Benefits / Application & Wordings

Aviation Product Recall (USD20M Limit) - Overview

Hiscox has been selected by The Aircraft Builders Council as the carrier to offer product recall coverage for ABC insureds and other qualifying manufacturers.

ABC and Hiscox have put together the first industry-specific recall risk policy for aircraft component manufacturers. The policy is aimed at Tier 2, 3 and 4 suppliers to the industry with sales of less than USD 1 billion producing components ranging from simple bearings or fasteners to complex avionics. This market-leading product has been designed to fit exactly to aviation component part manufacturers contractual exposure and responds to three types of incidents:

where bodily injury has been or would be caused by use of the insured product (occurrence)
where a competent regulatory authority has ordered the grounding of an aircraft (grounding)
where the product fails to perform its function or is rejected for being out of specification (warranty).

Hiscox is the lead underwriter with Global Aerospace as following underwriter.

Coverage

The policy is there to provide balance sheet protection against recall and replacement costs incurred following the supply of a faulty, out of specification or dangerous product by you and covers both first- and third-party costs. The expense to recall your product includes; inspection costs to confirm an insured event has occurred, notification, transportation, disposal and additional employee costs. In fact all reasonable and necessary costs incurred directly because of and connected with the recall can be claimed. Replacement expense can be either a replacement part, a refund, the cost to repair the affected part or the cost to acquire an equivalent part from another manufacturer. It also includes the cost to reinstall the replacement parts. It also covers defense costs incurred for the investigation and defense of any covered claim.

We provide 12 months of retro cover as standard on all new business quotes (longer periods are available for an additional premium) so you have meaningful cover in place from day one of the policy period. Multi-year policies are available (with annual review clauses) and can be tailored to cover your whole turnover or specific contracts.

Benefits

Unlike many other product recall insurers, we have worked with the aviation industry to develop bespoke and easy-to-understand policy wordings. We have extensive knowledge of the product recall and warranty world with dedicated underwriters who have over 80 years of combined industry experience.

Key Advantages

Bespoke policy wordings - Responds to the client’s specific needs. Underwriters have a thorough understanding of the coverage points.
Broad policy trigger - Client has confidence they will be covered for a wide range of circumstances.
One of the biggest underwriting teams in London - Brokers and clients benefit from a proactive team that has decades of underwriting experience in product recall.
Offer on a subscription or 100% basis - Client can take advantage of the risk diversification of the Lloyd’s market. Fast quote turnaround - Brokers and clients benefit from quick decision-making.
Access to underwriters on a face-to-face basis - Underwriters empowered to make decisions and meet with clients when required.
Claims handling mirrors our underwriting philosophy - Clients will be dealt with by decision-makers to get claims paid promptly and efficiently.
Access to crisis management consultants - Instant support for clients when facing a recall crisis.
Additional extensions for third-party financial loss - Policy coverage can be tailored to meet the client’s own risk appetite or budget.