WORCESTER, Mass., Nov. 29, 2017 /PRNewswire/ — The Hanover Insurance Group, Inc. (NYSE: THG) today announced it has expanded its product recall coverage to include additional protections for manufacturing companies. These investments reinforce The Hanover’s commitment to provide relevant, comprehensive insurance solutions for its agent partners.
“We’re committed to continually developing solutions and enhancing our capabilities to provide our agents with ways to better protect and serve their customers,” said Scott Grieco, president, middle market at The Hanover. “The frequency of recalls combined with the potentially staggering financial implications puts manufacturers at risk. In assessing some of these risks, it was clear there was a need in this market for an expanded insurance solution that could deliver protection for the diverse needs of this industry.”
The company’s product recall coverage offers reimbursement for expenses incurred to remove a defective product from the marketplace, including shipping, transportation and disposal, as well as the cost to notify customers. It also helps cover the cost of inspecting and testing defective products to determine if a recall is warranted.
In addition, the company offers the following optional coverages to further enhance manufacturers’ product recall protection.
Repair, replacement or repurchasing coverage: This covers costs incurred to repair a defective product, replace a product with a similar one, repurchase a product or reimburse customers for payments. It can also cover costs to redistribute and install replacement products or parts. Customer’s lost profit coverage: This can protect manufacturers when a product recall affects a customer’s ability to deliver their goods. It covers the customer’s resulting profit losses. Good faith advertising coverage: This covers the costs to help repair a company’s damaged reputation after a product recall through paid advertising, social media and public relations services.
The Hanover also offers product recall liability coverage, which differs from its general liability insurance. This optional coverage offers protection if a company is sued for costs associated with a recall and covers claims for damages and legal representation costs.
These coverage enhancements are additions to The Hanover’s broad offering of tools and products to serve the manufacturing industry, and will be available for commercial package policies starting with renewal dates of Jan. 1, 2018.
For more information, please visit hanover.com.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance