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Lexington Insurance Company Expands Product Liability Insurance with Product Withdrawal / Recall Coverage Endorsement
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New York – January 11, 2011 – Lexington Insurance Company, a Chartis company, today announced that it has expanded its products liability insurance coverage to respond to the increasing risks associated with product recalls.

Through a relationship with the Crisis Management unit of WorldSource, a division of Chartis, Lexington insureds will now have the option to purchase protection against product withdrawal or recall expenses, including those from claims that allege loss of profit resulting from a covered product recall event.

“As the U.S. regulatory environment continues to evolve, greater emphasis will be placed on food and durable goods safety, which underscores our clients’ need for recall protection,” said Denise Balan, Division President of WorldSource’s Crisis Management unit.

Available by endorsement, this coverage enhancement provides Lexington’s insureds with reimbursement for covered expenses incurred as the result of a product withdrawal or recall. These expenses include:

  • costs of notifying customers of a product recall;
  • costs for shipping and disposal of the recalled product;
  • costs for extra warehousing of the recalled product; and
  • costs associated with the refund, repair or replacement of a substitute product.

Additionally, this innovative endorsement provides reimbursement for covered third party expenses, including defense costs incurred by third parties as the result of claims arising from the product recall.

“Lexington and WorldSource are pleased to provide a comprehensive solution for our clients who seek enhanced product withdrawal coverage,” said Bob Nevin, Assistant Vice President of Lexington Insurance Company.

For more information regarding Lexington’s Product Recall endorsement, please contact Bob Nevin of Lexington Insurance Company at (617) 772-4546 or robert.nevin@chartisinsurance.com. You can also visit www.lexingtoninsurance.com.

About Chartis

Chartis is a world leading property-casualty and general insurance organization serving more than 45 million clients in over 160 countries and jurisdictions. With a 90-year history, one of the industry’s most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.

Chartis is the marketing name for the worldwide property-casualty and general insurance operations of Chartis Inc. For additional information, please visit our website at http://www.chartisinsurance.com. All products are written by insurance company subsidiaries or affiliates of Chartis Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. The risk management resources available through the www.eplriskmanager.com website are provided by an independent third party, Littler Mendelson, P.C., are subject to the Terms of Use detailed on the website and are not guaranteed by Chartis. Certain coverage may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.

Marie Ali