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or recall that occurred before you <br />acquired or formed the organization. <br />c. Under SECTION II — LIABILITY, E. <br />Liability and Medical Expense General <br />Conditions, 2. Duties in the Event of <br />Occurrence, Offense, Claim or Suit, <br />paragraph e. is added as follows: <br />e. You must see to it that the following <br />are done in the event of an actual or <br />anticipated "covered recall" that may <br />result in "product recall expense ": <br />(1) Give us prompt notice of any <br />discovery or notification that "your <br />product" must be withdrawn or <br />recalled. Include a description of <br />"your product" and the reason for <br />the withdrawal or recall; <br />(2) Cease any further release, <br />shipment, consignment or any <br />other method of distribution of like <br />or similar products until it has <br />been determined that all such <br />products are free from defects that <br />could be a cause of loss under <br />this insurance. <br />d. Under SECTION II — LIABILITY, F. <br />Liability and Medical Expenses <br />Definitions, the following additional <br />definitions are added: <br />"Covered recall" means a recall made <br />necessary because you or a government <br />body has determined that a known or <br />suspected defect, deficiency, inadequacy, <br />or dangerous condition in "your product" <br />has resulted or will result in "bodily injury" <br />or "property damage ". <br />"Product recall expense(s)" means: <br />a. Necessary and reasonable expenses <br />for: <br />(1) Communications, including radio <br />or television announcements or <br />printed advertisements including <br />stationary, envelopes and <br />postage; <br />(2) Shipping the recalled products <br />from any purchaser, distributor or <br />user to the place or places <br />designated by you; <br />(3) Remuneration paid to your regular <br />"employees" for necessary <br />overtime; <br />(4) Hiring additional persons, other <br />than your regular "employees "; <br />(5) Expenses incurred by <br />"employees" including <br />transportation and <br />accommodations; <br />(6) Expenses to rent additional <br />warehouse or storage space; <br />(7) Disposal of "your product ", but <br />only to the extent that specific <br />methods of destruction other than <br />those employed for trash <br />discarding or disposal are <br />required to avoid "bodily injury" or <br />"property damage" as a result of <br />such disposal, <br />you incur exclusively for the purpose <br />of recalling "your product "'; and <br />b. Your lost profit resulting from such <br />"covered recall ". <br />e. Under SECTION II — LIABILITY, D. <br />Liability and Medical Expenses Limits <br />of Insurance, the following is added: <br />5. The Limits of Insurance and rules <br />stated below fix the most that we will <br />pay under this Product Recall <br />Expense Coverage. <br />(1) The Aggregate Limit is the most <br />that we will reimburse you for the <br />sum of all "product recall <br />expenses" incurred for all "product <br />recall expenses" initiated during <br />the policy period. <br />(2) The Occurrence Limit shown on <br />the Summary of Coverages is the <br />most we will pay in connection <br />with any one defect or deficiency. <br />(a) All "product recall expenses' <br />in connection with <br />substantially the same <br />general harmful condition <br />will be deemed to arise out <br />of the same defect or <br />deficiency and considered <br />one "occurrence ". <br />(b) Any amount reimbursed for <br />"product recall expenses" in <br />connection with any one <br />"occurrence" will reduce the <br />amount of the Aggregate <br />Limit available for <br />reimbursement of "product <br />recall expenses" in <br />connection with any other <br />defect or deficiency. <br />(c) If the Aggregate Limit has <br />been reduced by <br />391 -1006 06 09 Includes copyrighted material of Insurance Services Office, Inc. Page 4 of 5 <br />