Automotive Products

Automotive recall exposures have been particularly difficult for underwriters to assess due to the potentially costly notification and repair expense. Manufacturers are obligated to attempt to notify owners of recalled products. A manufacturer’s means of remedy may include the repair, replacement, or repurchase of the vehicle or item of equipment that will correct the safety defect or noncompliance.  The value of the recalled product is not the only cost to take into consideration.  The cost to extract the defective component from the automobile and reinstall the new part could be much greater than the value of the defective part itself.

Target Risks

  • Automotive component part manufacturers (including safety critical parts)
  • Can include non-automotive parts provided they are no more than 10% of the total revenues
  • Can consider single contracts where Recall coverage is a contractual requirement
  • Any revenue size can be considered
  • No finished products
  • We can include the non-US domiciled operations of a US parent company



Domestic and International non-admitted carriers


Available Limits

  • $500,000 – $10,000,000 any one covered incident and in the aggregate
  • Additional $50,000,000 may be available on follow form excess basis



  • Minimum SIR = $25,000
  • Minimum deductible for the risk will increase based on estimated revenues


Minimum Premium

  • $15,000
  • Worldwide Territory


Coverage Triggers

  • Product Safety Defect
  • Impaired Property
  • Product Guarantee
  • Government Recall



  • Product Recall Expense
  • Replacement Costs (including the cost to extract the defective product from the automobile and install the replacement part)
  • Third Party Financial Loss