Brownyard Group has announced new financial protection for cosmetics businesses in the face of potential product recall risks.
The company is launching a new, optional coverage endorsement, to be added to its general liability (GL) policy for its cosmetics program, FOUNDATION. This new endorsement will add product recall coverage, underwritten by Hudson Insurance Group (Hudson), whose companies carry an A+ (Superior) rating from AM Best.
Product recall coverage endorsement reimburses costs associated with cosmetics manufacturers, distributors, and importers for withdrawing or recalling covered products.
Such costs include notification expenses, proper disposal expenses, overtime pay, and many more. The endorsement is available to all qualified businesses with a GL policy through FOUNDATION.
For supplemental coverage, the cosmetics company cannot have a single recall history and Brownyard has to confirm that a recall plan is formally instituted by the insured with the ability to track the products.
“We are thrilled to add an additional layer of protection to the cosmetics industry with this new product recall coverage endorsement,” said Sean Brownyard, senior vice president of the Brownyard Group.
Brownyard added that from financial loss to reputational damage, product recalls present a significant risk to the cosmetics industry.
FOUNDATION® is endorsed in all states and offers coverage for different assets including products liability, hired/non-owned auto, commercial property, and inland marine coverages.
What do you think about this new coverage solution from Brownyard Group? Join the conversation and comment below.
