5-in-1 insurance solution for automotive manufacturers

In today’s global marketplace, the risk of product recall and financial loss has never been greater.

Increasing regulatory scrutiny, pressured margins, contractual requirements, complex supply chains and changing technology can lead to an increase in the occurrence and severity of losses especially for automotive manufactures.

Some product defect risk can be mitigated using technology during production, but errors can affect even the most prestigious, global product manufacturers and brands.

Taking into consideration the specific risk exposures faced by Asian automotive manufacturers and what their clients often contractually require from them, we have built a 5-in-1 insurance solution.

Our new solution can cover your liability exposure, avoiding coverage gaps and providing you with one of the best solutions available today in the Asian liability and recall insurance market.

What is the 5-in-1 solution?

We can provide automotive manufacturers cover for the following:

• General liability
• Product liability
• Product recall first and third party
• Product guarantee
• Financial loss relating to product recall

How can it help your company?

The 5-in-1 solution can help protect your company’s:

Shareholder value

Liability losses and recalls can have a significant effect on a company’s balance sheet, causing a cash shortage that can eliminate profit.

Brand and reputation

When risk management systems and controls do fail, what matters is how you respond and manage the event. We’ll help you ensure your investment in risk transfer includes any support with crisis communications you may need to respond to crises, protect and rehabilitate your brand.

Costs expenditure

Whether incurred by your company or a third party such as a direct customer. The costs to cover labour, transportation and disposal due to a product recall can be expensive.

What can be covered?

This solution can provide cover for:

Product safety

Providing cover where there is evidence that a product could or already has caused bodily injury or property damage.

Product guarantee

Cover for when a design or manufacturing error results in the failure of a product to perform its intended function.

Government recall

Provides coverage for the insured where a government authority or safety agency orders or mandates a recall.

Third party financial loss

Provides an insured with coverage for costs that a third party (like a customer) holds them liable for, that have arisen as a direct result of the insured’s product defect.

General liability

Provides coverage for damages the insured may become legally obligated to pay because of bodily injury, property damage and personal and advertising injury.

Product liability

Provides coverage for damage the insured may become legally obliged to pay because of bodily injury or property damage caused by the insured’s product.

Manufacturing E&O

Provides coverage for a loss for which the insured becomes legally liable to pay as damages due to a claim for financial injury caused by a wrongful act.

By buying these coverages from the same insurer you can avoid gaps in coverage and potential conflicts between different insurance companies.

This can help get claims paid and accelerate the claims management process.

Benefits of buying this solution

1. 01

   Flexibility

   Possibility to buy each section separately.*

2. 02

   Customised wording

   Customised for automotive component manufacturers (ISO form).

3. 03

   Innovative

   Completely reimagined the 4-in-1 coverage offered at present in the market.

4. 04

   Led by Asia

   Mainly Asian based panel of insurers, that can speak the local languages and are based close by.

5. 05

   Comprehensive

   With one single product you can cover most, if not all of your organisation’s liability exposure.

6. 06

   Seamless coverage

   One policy for all your liability exposures can help ensure there are no grey areas when it comes to coverage.

*Financial loss and product guarantee can only be bought in combination with product recall, not stand-alone.

Disclaimer

Willis Towers Watson hopes you found the general information provided on this webpage informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In Singapore, Willis Towers Watson offers insurance products through Willis Towers Watson Brokers (Singapore) Pte. Ltd., licensed Direct General Insurance Broker, General Reinsurance Broker, Life Reinsurance Broker, Lloyd’s Broker regulated by the Monetary Authority of Singapore.