CFC Underwriting said Wednesday it has launched a quality defect endorsement that expands the scope of its product recall coverage worldwide.
The endorsement removes the traditional requirement for bodily injury or third-party property damage to trigger a claim and extends cover to manufacturing errors that result in defects in taste, smell, appearance or finish.
These types of defects frequently lead to costly recalls but have historically fallen outside standard recall coverage, CFC said in a statement.
Limits of up to $4 million are available in the U.S. and coverage is offered as a 25%, 50% or 100% sublimit.
The endorsement is available across various sectors, including food and beverage, nutraceuticals and cosmetics products and can be tailored to individual risk profiles.