ACE Group has launched 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 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.
The new 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
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