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LONDON--(BUSINESS WIRE)--ACE Group today announced the launch of a new insurance product offering for fluid, process and power equipment manufacturers in the UK and Ireland which will include product recall. The new product includes a range of cover enhancements, and the decision to extend the cover to include the expenses associated with a recall responds to growing concerns among manufacturers regarding the growing complexity and cost of product recalls.

Components used to manufacture fluid and hydraulic equipment, electric motors, transformers and generators, turbines, instrumentation and measuring equipment are typically sourced from suppliers all over the world. Increased product complexity combined with extended global supply chains that can involve a web of suppliers across many countries mean that product recalls are a significant threat to exporters in the UK and Ireland.

Mark Roberts, Casualty Manager UK & Ireland ACE Group, said: “We believe that product recalls are now one of the biggest threats on a manufacturer’s balance sheet. They pose significant challenges for companies, typically with turnover of £5m plus, who are sourcing, manufacturing and distributing internationally. In our experience, the costs incurred in a recall can now be so great that companies are frequently unable to survive them.”

ACE’s Product Recall Expenses cover will provide UK manufacturers of fluid, process and power equipment products with first party recall expenses for:

• PR and communication costs associated with managing the recall
• Transportation costs
• Wages
• Hire of additional staff
• Hire of extra warehousing space
• Disposal costs

Limits of indemnity are available up to £2m to cover all losses related to one recall.

Mark Roberts said: “The addition of recall expenses demonstrates our commitment to delivering targeted, flexible cover which provides tangible benefits to businesses that need it most. We estimate there are over 500 UK companies with a turnover of over £5m that can benefit from this cover.”

-ENDS-

About ACE:

The ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 53 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index.

ACE UK & Ireland’s five regions are:

∙ Ireland (Dublin and Belfast) ∙ Scotland (Glasgow, Aberdeen) ∙ The North (Leeds, Manchester, Newcastle) ∙ Midlands (Birmingham) ∙ London and South East (London, Maidstone, Reading, Watford)

Additional information can be found at: www.acegroup.com/uk

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