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(a) Recall of "your products" that have <br />no known or suspected defect <br />solely because a known or <br />suspected defect In another of <br />"your products" has been found, <br />b. Under SECTION II - LIABILITY, 0. Who <br />Is An Insured, paragraph 4.c, is added <br />as follows: <br />c. "Bodily injury" or "property damage" <br />do not apply to "product recall <br />expense" arising out of any <br />withdrawal or recall that occurred <br />before you acquired or formed the <br />organization. <br />c, Under SECTION tl - LIABILITY, E. <br />Liability and Medical Expense General <br />Conditions, 2. Duties In the Event of <br />Occurrence, Offense, Claim or Suit, <br />paragraph a. Is added as follows: <br />e. You must see to it that the following <br />are done in the event of an actual or <br />anticipated "covered recall" that <br />may result in "product recall <br />expense ": <br />(1) discoerypornpnotifc f notification that <br />"your product" must be <br />withdrawn or recalled. Include a <br />description of "your product' <br />and the reason for the <br />withdrawal or recall; <br />(2) Cease any further release, <br />shipment, consignment or any <br />other method of distribution of <br />like or similar products until It <br />has been determined that all <br />such products are free from <br />defects that could be a cause of <br />lose under this insurance. <br />d. Under SECTION II - LIABILITY, P. <br />Liability and Medical Expenses <br />DeMltlons, the following additional <br />definitions are added: <br />"Covered recall" means a recall made <br />necessary because you or a government <br />body has determined that a known or <br />suspected defect, deficiency, <br />Inadequacy, or dangerous condition In <br />"your product" has resulted or will result <br />in "bodily Injury" or "property damage ". <br />"Product recall expense(s)" means: <br />a, Necessary and reasonable expenses <br />for: <br />(1) Communications, Including radio <br />or television announcements or <br />printed advertisements including <br />stationary, envelopes and <br />postage; <br />(2) Shipping the recalled products <br />from any purchaser, distributor <br />or user to the place or places <br />designated by you; <br />(3) Remuneration paid to your <br />regular "employees" for <br />necessary overtime; <br />(4) Wiring additional persons, other <br />than your regular "employees "; <br />(8) Expenses incurred by <br />"employees" including <br />transportation and <br />accommodations; <br />(6) Expenses to rent additional <br />warehouse or storage space; <br />(F) Disposal of "your product ", but <br />only to the extent that specific <br />methods of destruction other <br />than those employed for trash <br />discarding or disposal are <br />required to avoid "bodily Injury" <br />or "property damage" as a result <br />of such disposal, <br />you Incur exclusively for the purpose <br />of recalling "your product "; and <br />b, Your lost profit resulting from such <br />"covered recall'. <br />e. Under SECTION II - LIABILITY, D. <br />Liability and Medical Expenses Limits of <br />Insurance, the following Is added: <br />S. The Limits of Insurance and rules <br />stated below fix the most that we <br />will pay under this Product Recall <br />Expense Coverage. <br />(1) The Aggregate Limit is the most <br />that we will reimburse you for <br />the sum of all "product recall <br />expenses" Incurred for all <br />"product recall expenses" <br />Initiated during the policy period. <br />(2) The Occurrence Limit shown on <br />the Summary of Coverages Is <br />the most we will pay In <br />connection with any one defect <br />or deficiency. <br />(a) All "product recall <br />expenses" in connection <br />with substantially the same <br />general harmful condition <br />will be deemed to arise out <br />of the same defect or <br />deficiency and considered <br />one "occurrence ". <br />391.1006 06 09 Includes copyrighted material of Insurance Services Ofi0ce, Inc. Page 4 of 6 <br />25A -68 <br />