ACE Westchester has launched ACE Recall Plus for Small Business, a product that offers product recall coverage and crisis management services to the small business market segment.
The move follows an increase in the frequency and cost of product recalls in recent years that have caused financial and reputational risks for smaller businesses, some of which have been unable to access sufficient coverage through existing market offerings, he insurer said.
For a small business, a product recall can cause financial disaster and potentially force a business to close its doors.
Until now market offerings made it difficult for small businesses to buy standalone product recall coverage; ACE Recall Plus for Small Business insurance addresses this need, the company added.
The policy suite is available to companies with revenues of up to $25 million, and allows policyholders to select coverage based on their needs and obligations. ACE Westchester’s expanded product recall reimburse for covered financial losses resulting from a recall. This coverage also provides advisory services that can help small businesses respond quickly to protect their brand name.
The product offers lower self-insured retentions and lower limits than are typically available in the market, with three distinct insurance policies:
• Component Parts: Reimburses the financial loss from a covered insured event resulting from the use of component parts in the general manufacturing, electronic, medical device, automotive and aviation industry.
• Consumable Products: Reimburses the financial loss resulting from a covered insured event in the food and beverage, cosmetics and pharmaceuticals industries.
• Consumer Goods: Reimburses the financial loss resulting from a covered insured event in the areas of appliances, electronics/electrical, clothes, furniture, household goods, children’s products, outdoor goods and products, sports/exercise equipment and products.
ACE Westchester’s small business policyholders will have access to product recall consultants on a pre- and post-incident basis, including loss mitigation services and 24/7 emergency availability.
In September, the U.S. Consumer Product and Safety Commission issued 25 product recalls—nearly one recall for every day of the month—and the U.S. Food and Drug Administration data shows that there has been a surge in product recalls reported to the agency this year, the company stated.
ACE Westchester is part of ACE Group, a multiline property/casualty insurer.
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