Laserfiche WebLink
o. Recall Of Products, Work Or Impaired Property <br />(1) Damages claimed for any loss, cost or expense incurred by you or others for the loss of <br />use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal <br />of: <br />(a) "Your product"; <br />(b) "Your work"; or <br />(c) "Impaired property"; <br />if such product, work, or property is withdrawn or recalled from the market or from use by <br />any person or organization because of a known or suspected defect, deficiency, <br />inadequacy or dangerous condition in it, but this exclusion does not apply to "product <br />recall expenses" that you incur for the "covered recall" of "your product". <br />(2) This insurance does not apply to "product recall expense" arising out of or resulting from: <br />(a) Any product withdrawal initiated due to: <br />(i) The failure of "your products" to accomplish their intended purpose, including <br />any breach of warranty of fitness, whether written or implied. This exclusion <br />does not apply if such failure has caused or is reasonably expected to cause <br />"bodily injury" or physical damage to tangible property. <br />(ii) Copyright, patent, trade secret or trademark infringements; <br />(iii) Transformation of a chemical nature, deterioration or decomposition of "your <br />product", except if it is caused by: <br />i. An error in manufacturing, design, processing or transportation of "your <br />product"; or <br />H. Product tampering <br />(iv) Expiration of the designated shelf life of "your product". <br />(b) A "product withdrawal", initiated because of a "defect" in "your product" known to exist <br />by the named insured or the named insured's "executive officers", prior to the <br />inception date of this Coverage Form or prior to the time "your product" leaves your <br />control or possession. <br />(c) Recall of any specific products for which "bodily injury" or "property damage" is <br />excluded under SECTION II — LIABILITY by endorsement. <br />(d) Recall of "your products" which have been banned from the market by an authorized <br />government entity prior to the policy period. <br />(e) The defense of a claim or "suit" against you for "product withdrawal expenses". <br />Section II. F. Liability And Medical Expenses Definitions, is amended to include the following: <br />(1) "Covered recall" means: <br />(a) A product recall made necessary because you determine that the product recall is <br />necessary; or <br />(b) An authorized government entity has ordered you to conduct a product recall. <br />(2) "Product recall expense" means necessary and reasonable expenses incurred by "you" for: <br />(a) Costs of notification of a "covered recall"; <br />(b) Costs of stationery, envelopes, production of announcements and postage or facsimiles; <br />(c) Costs of overtime paid to you regular non -salaried employees and costs incurred by your <br />employees, including costs of transportation and accommodations; <br />(d) Costs of computer time; <br />(e) Costs of hiring independent contractors and other temporary employees; <br />(f) Costs of transportation, shipping or packaging for the return of "your products" affected <br />by a recall; <br />(g) Costs of warehouse or storage space; or <br />Page 20 of 24 Includes Copyrighted Material of the Insurance Services Office, Inc. BP990102 0522 <br />Used with permission <br />ATTY/AGR.2026.027/Azasa Inc. (875 Middlefield Rd) (Page 37 of 51) <br />