Orange County NC Website
71 1403 1115 Includes copyrighted material of Insurance Services Office, Inc., with its permission. <br />Copyright Insurance Services Office, Inc., 1984, 1992, 2003, 2004, 2006, 2013 Page 2 of 10 <br /> <br />d. The initiation of a "product withdrawal" <br />will be deemed to have been made only <br />at the earliest of the following times: <br /> <br />(1) When you first announced, in any <br />manner, to the general public, your <br />vendors or to your employees (other <br />than those employees directly <br />involved in making the <br />determination) your decision to <br />conduct or participate in a "product <br />withdrawal". This applies regardless <br />of whether the determination to <br />conduct a "product withdrawal" is <br />made by you or is requested by a <br />third party; or <br /> <br />(2) When you first received, either orally <br />or in writing, notification of an order <br />from an authorized government <br />entity to conduct a "product <br />withdrawal”. <br /> <br />e. "Product withdrawal expenses” incurred <br />to withdraw "your products" which <br />contain the same or substantially similar <br />"defects" will be deemed to have arisen <br />out of the same "product withdrawal". <br /> <br />2. Exclusions <br />This insurance does not apply to "product <br />withdrawal expenses” arising out of: <br /> <br />a. Breach Of Warranty And Failure To <br />Conform To Intended Purpose <br /> <br />Any "product withdrawal" initiated due to <br />the failure of "your product" to <br />accomplish their intended purpose, <br />including any breach of warranty of <br />fitness, whether written or implied. This <br />exclusion does not apply if such failure <br />has caused or is reasonably expected to <br />cause "bodily injury" or physical damage <br />to tangible property other than "your <br />product". <br /> <br />b. Infringement Of Copyright, Patent, <br />Trade Secret, Trade Dress Or <br />Trademark <br /> <br />Any "product withdrawal" initiated due to <br />copyright, patent, trade secret, trade <br />dress or trademark infringements. <br />c. Deterioration, Decomposition Or <br />Chemical Transformation <br /> <br />Any "product withdrawal" initiated due to <br />transformation of a chemical nature, <br />deterioration or decomposition of "your <br />product". This exclusion does not apply <br />if it is caused by: <br /> <br />(1) An error in manufacturing, design, <br />or processing; <br /> <br />(2) Transportation of "your product"; or <br /> <br />(3) "Product tampering". <br /> <br />d. Goodwill, Market Share, Revenue, <br />Profit Or Redesign <br /> <br />The costs of regaining goodwill, market <br />share, revenue or "profit" or the costs of <br />redesigning "your product". <br /> <br />e. Expiration Of Shelf Life <br /> <br />Any "product withdrawal" initiated due to <br />expiration of the designated shelf life of <br />"your product". <br /> <br />f. Known Defect <br /> <br />A "product withdrawal", initiated <br />because of a "defect" in "your product" <br />known to exist by the Named Insured or <br />the Named Insured's "executive <br />officers", prior to the date when this <br />Coverage Part was first issued to you or <br />prior to the time "your product" leaves <br />your control or possession. <br /> <br />g. Otherwise Excluded Products <br /> <br />A recall of any specific products for <br />which "bodily injury" or "property <br />damage" is excluded under Coverage A <br />Bodily Injury And Property Damage <br />Liability by endorsement. <br /> <br />h. Governmental Ban <br /> <br />A recall when "your product" or a <br />component contained within "your <br />product" has been: <br />DocuSign Envelope ID: FE3CFF98-A42F-4C55-B0DD-74CAECF8A5D5