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<br />d. The following definitions are added to the Definitions Section: <br /> <br />J 1. 'Covered recall" means a recall made necessal)l because the insured or a government body has deter- <br />mined that a known or suspected defect. deficiency, inadequacy or dangerous condition in "your product" <br />has resulted in or will result in "bodily injul)I" or "property damage". <br /> <br />2. "Product Recall Expense" means: <br /> <br />(a) The following necessal)l and reasonabie expenses you incur exclusively for the purpose of recalling <br />"your product": <br /> <br />(1) For communications, including radio or television announcements or printed advertisements <br />including stationel)l. envelopes and postage; <br /> <br />(2) For shipping the recalled products from any purchaser, distributor or user to the place or places <br />designated by you; <br /> <br />(3) For remuneration paid to your regular "employees" for necessal)l overtime; <br /> <br />(4) For hiring additional persons, other than your regular "employees"; <br /> <br />(5) Incurred by "employees", including transportation and accommodations; <br /> <br />(6) To rent additional warehouse or storage space; or <br /> <br />(7) For disposal of "your products", but only to the extent that specific methods of destruction other <br />than those employed for trash discarding or disposal are required to avoid "bodiiy injul)I" or <br />"property damage" as a result of such disposal, but <br /> <br />"product recall expenses" does not include costs of regaining your market share, goodwill, revenue or profit. <br /> <br />(b) "Product Recall Expense" does not include any expenses resulting from: <br /> <br />(1) Failure of any product to accomplish its intended purpose; <br /> <br />(2) Breach of warranties of frtness, quality, durability or performance; <br /> <br />(3) Loss of customer approval. or any cost incurred to regain customer approval; <br /> <br />(4) Redistribution or replacement of "your product" which has been recalled by like products or substi- <br />tutes; <br /> <br />(5) Caprice or whim of the insured; <br /> <br />(6) A condition likely to cause loss of which any insured knew or had reason to know at the inception of <br />this insurance; and <br /> <br />(7) Recall of "your products" that have no known or suspected defect solely because a known or sus- <br />pected defect in another of "your products" has been found <br /> <br />20. SUPPLEMENTARY PAYMENTS -INCREASED LIMITS <br /> <br />In the SUPPLEMENTARY PAYMENTS - Coverages A and B provision: <br /> <br />a. The limit for the cost of bail bonds is amended to $2,500; and <br /> <br />b. The limit for reasonable expenses incurred by the "insured" is amended to $500 a day. <br /> <br />VCG 205 0205 <br /> <br />Includes copyrighted material of Insurance Services Office, Inc. <br />Copyright 2004, I!!!!! 1! 11!!!!lI!!! H! t nll! l~ I!! !!Pl!! I ~1!1 n~ I! <br /> <br />Page 7 of7 <br />