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Auto RecallInsurance
1 Brakes 2 Valves/Pipes 3 Chassis 4 Airbag
Auto recalls affect components manufacturers across the global supply chain, from the OEM
through to tiers 1, 2 and 3 automotive parts suppliers. They can have a devastating impact on
manufacturers’ finances and can lead to loss of contracts.
How is the policy triggered?
• Manufacturing error / a component failing to perform its function
• Government / NHTSA enforced recall
• Threat of bodily injury or property damage
Recalls in the automotive industry are growing at an alarming rate.
219%increase in US auto recalls
in the past 10 years
63m+vehicles recalled in US
alone in 2014
205m+total cars recalled in the
US since 2005
Specialist recall cover for automobile component manufacturers.
Examples of products that can be covered:
Requirements
What is covered:
• First party and third party recall expenses
• Expenses include advertising & communication costs, transportation costs, disposal costs, extra expense and additional staff costs
• 12 month retroactive coverage as standard
• Replacement expenses including reinstallation costs
• Customer financial loss extension available
• Unlimited consultant costs
• Limits USD50,000,000+
7 Engine Components6 Metal Stamping5 Electronics4 Airbag
Minimum premiumUSD20,000
Minimum retentionUSD25,000
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I would expect that we will actually see an increase in recalls in 2015
Mark Rosekind, head of NHTSA
For enquiries please email [email protected]
Mark ColgateHead of Recall Practice+44 (0)20 7456 9370+44 (0)7919 307 [email protected]
Robert MarshallSenior Account Executive+44 (0)20 7456 9311+44 (0)7788 970 [email protected]
Stefan BrownAccount Handler+44 (0)20 7456 8098+44 (0)7506 854 [email protected]
RKH SpecialtyOne Whittington Avenue, London, EC3V 1LE, United Kingdom
T +44 (0)20 7456 9300F +44 (0)20 7456 9399
Fact: Equivalent of 1 in 5 US cars recalled in 2014
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RKH Specialty is a trading name of Howden UK Group Limited, part of the Hyperion Insurance Group. Howden UK Group Limited is authorised and regulated by the Financial Conduct Authority in respect of general insurance business. Registered in England and Wales under company registration number 725875. Registered Office: 16 Eastcheap, London EC3M 1BD.
