CENTRE FOR ORGANIZATION EFFECTIVENESS, THE

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Z23 J909524 00 1001835 repair, replacement, adjustment, removal (1) Insureds; or disposal of: (2) "Covered Recalls" initiated; or (1) "Your product"; (3) Number of "your products" withdrawn (2) "Your work"; or or recalled. (3) "Impaired property"; b. The Product Recall Expense Aggregate if such product, work or property is Limit is the most we will reimburse you for withdrawn or recalled from the market or the sum of all "product recall expenses" from use by any person or organization incurred for all "covered recalls" initiated because of a known or suspected defect, during the policy period. deficiency, inadequacy or dangerous c. The Product Recall Each Occurrence Limit condition in it, but this exclusion does not is the most we will pay in connection with apply to "product recall expenses"that you any one defect or deficiency. incur for the "covered recall" of "your d. All "product recall expenses" in connection product" if the "covered recall"was initiated with substantially the same general harmful during the policy period. condition will be deemed to arise out of the However, the exception to the exclusion same defect or deficiency and considered does not apply to"product recall expenses" one "occurrence". resulting from: e. Any amount reimbursed for "product recall (4) Failure of any products to accomplish expenses" in connection with any one their intended purpose; "occurrence" will reduce the amount of the (5) Breach of warranties of fitness, quality, Product Recall Expense Aggregate Limit durability or performance; available for reimbursement of "product recall expenses" in connection with any (6) Loss of customer approval, or any cost other defect or deficiency. incurred to regain customer approval; f. If the Product Recall Expense Aggregate (7) Redistribution or replacement of "your Limit has been reduced by reimbursement product" which has been recalled by of "product recall expenses" to an amount like products or substitutes; that is less than the Product Recall (8) Caprice or whim of the insured; Expense Each Occurrence Limit, the (9) A condition likely to cause loss of which remaining Aggregate Limit is the most that any insured knew or had reason to will be available for reimbursement of know at the inception of this insurance; "product recall expenses" in connection with any other defect or deficiency. (10)Asbestos, including loss, damage or clean up resulting from asbestos or g• Product Recall Deductible asbestos containing materials; or We will only pay for the amount of"product (11)Recall of "your products" that have no recall expenses"which are in excess of the known or suspected defect solely $500 Product Recall Deductible. The because a known or suspected defect Product Recall Deductible applies in another of"your products" has been separately to each "covered recall". The found. limits of insurance will not be reduced by the amount of this deductible. 2. The following is added to SECTION II — WHO IS AN INSURED, paragraph 3.b.: We may, or will if required bylaw, pay all or any part of any deductible amount, if "Product recall expense" arising out of any applicable. Upon notice of our payment of withdrawal or recall that occurred before you a deductible amount, you shall promptly acquired or formed the organization. reimburse us for the part of the deductible 3. The following is added to SECTION III — amount we paid. LIMITS OF INSURANCE: The Product Recall Expense Limits of Product Recall Expense Limits of Insurance Insurance apply separately to each a. The Limits of Insurance shown in the consecutive annual period and to any SUMMARY OF COVERAGES of this remaining period of less than 12 months, endorsement and the rules stated below fix starting with the beginning of the policy period the most that we will pay under this Product shown in the Declarations, unless the policy Recall Expense coverage regardless of the period is extended after issuance for an number of: additional period of less than 12 months. In that 822-0001 08 19 Includes copyrighted material of the Insurance Services Office Inc.,with its permission. Page 7 of 14 Copyright 2019 The Hanover Insurance Company.All Rights Reserved. Insured Copy