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First Party Recall Takaful

Product recall situations present real threats to manufacturers; maintaining key business relationships, restoring production and protecting cash flow is absolutely vital. Skilful handling of a recall not only minimises any damage caused by a faulty product, but also demonstrates reliability and professionalism to important wholesale and retail connections - which will be essential components when the time comes for speedy redistribution and remarketing of the product.

Third party and products liability Takaful may cover legal liabilities for injury or damage, but they will not usually cover the costs of recalling a faulty product. Considerable costs can be incurred in recalling products and in rebuilding public confidence. The chain of events triggered by a recall, whether voluntary or compulsory, can include a drop in sales, loss of customers' confidence, loss of hard-won retail shelf space and loss of critical supply contracts.

Chartis Takaful Recall Takaful can protect businesses from the devastating effects of such recalls; covering the key expense areas and also providing the expertise of RQA, Hill & Knowlton or other independent recall consultants to guide the company through the critical first few weeks of a product recall.

Cover

The Takaful covers loss arising out of the recall of a product as a result of:

- Accidental omission, introduction or substitution of a component or substance;
- Error in the design, manufacture, packaging, blending, mixing, compounding, labelling or storage;
- Intentional, malicious damage by an employee or third party;
provided that the use of the covred product has resulted in or would result in bodily injury or property damage.

Cover includes:

- Communication (radio, TV, Internet, ads.)
- Shipping from purchaser, distributor or user
- Overtime and additional personnel costs
- Storage costs and cost of disposal
- Redistribution
- Independent Security, PR or recall Consultants (no deductible)

Cover Optional:

- Rehabilitation Expenses to restore the product to projected sales levels or market share
- Restoration, Repair or Refund Expenses
- Loss of Net Profit
- Loss of Gross Profit
- Third Party Recall
- Product Extortion
- Government Recall Containment

Geographical Scope

Worldwide

Customer Profile

Non-component finished goods manufacturers in the following sectors:

- Toys and child related products
- Sports and recreational equipment
- Packaging and containers
- Garden and agricultural equipment
- Tools and cleaning fluids
- Household appliances and equipment
- Heating and cooling systems
- Furniture, fixtures including construction materials