Hiscox launches new product recall cover for aircraft part makers
In response to a growing need to meet the cost of expensive recalls in aircraft manufacturing, Hiscox has launched Aviation Component Warranty – the market’s first industry-specific product recall cover for aircraft components.
Aimed primarily at suppliers worldwide with sales of less than $1 billion, Aviation Component Warranty will respond to the contractual obligations to customers arising from the supply of a defective part or component that is not up to specification. The cover provides balance sheet protection to manufacturers, paying for the recall and placement costs they incur, including notifying clients, disposal of the defective part, replacement expenses and additional employee costs.
“There are a lot of recalls in the aircraft manufacturing sector, particularly related to quality issues where costs are swallowed by either the aircraft manufacturer or the component supplier,” says Andrew Kyle, Product Recall Underwriter for Hiscox London Market. “This product fills a real gap in insurance cover available for aircraft-industry component manufacturers, responding not just to faulty parts but also if they are rejected by their customer for simply being out of specification.”
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