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COMMERCIAL GENERAL LIABILITY <br />CGL 088 (02 21) <br />CGL 088 (02 21) Includes copyrighted material of the Insurance Services Office, Inc., with its permission. Page 4 of 14 <br />Copyright 2020 FCCI Insurance Group <br />a. This insurance applies to a "product withdrawal" only if the "product withdrawal" is initiated in the <br />"coverage territory" during the policy period because: <br />(1) You determine that the "product withdrawal" is necessary; or <br />(2) An authorized government entity has ordered you to conduct a "product withdrawal". <br />c. We will reimburse only those "product withdrawal expenses" which are incurred and reported to us <br />within one year of the date the "product withdrawal" was initiated. <br />d. The initiation of a "product withdrawal" will be deemed to have been made only at the earliest of the <br />following times: <br />(1) When you have announced, in any manner, to the general public, your vendors or to your <br />employees (other than those employees directly involved in making the determination) your <br />decision to conduct a "product withdrawal" This applies regardless of whether the determination <br />to conduct a "product withdrawal" is made by you or is requested by a third party; <br />(2) When you received, either orally or in writing, notification of an order from an authorized <br />government entity to conduct a "product withdrawal; or <br />(3) When a third party has initiated a "product withdrawal" and you communicate agreement with the <br />"product withdrawal", or you announce to the general public, your vendors or to your employees <br />(other than those employees directly involved in making the determination) your decision to <br />participate in the "product withdrawal", whichever comes first. <br />e. "Product withdrawal expenses" incurred to withdraw "your products" which contain: <br />(1) The same "defect" will be deemed to have arisen out of the same "product withdrawal"; or <br />(2) A different "defect" will be deemed to have arisen out of a separate "product withdrawal" if newly <br />determined or ordered in accordance with paragraph 1.b of this coverage. <br />2. Exclusions <br />This insurance does not apply to "product withdrawal" expenses" arising out of: <br />a. Any "product withdrawal" initiated due to: <br />(1) The failure of "your products" to accomplish their intended purpose, including any breach of <br />warranty of fitness, whether written or implied. This exclusion does not apply if such failure has <br />caused or is reasonably expected to cause "bodily injury" or physical damage to tangible <br />property. <br />(2) Copyright, patent, trade secret or trademark infringements; <br />(3) Transformation of a chemical nature, deterioration or decomposition of "your product", except if it <br />is caused by: <br />(a) An error in manufacturing, design, processing or transportation of "your product"; or <br />(b) "Product tampering". <br />(4) Expiration of the designated shelf life of "your product". <br />b. A "product withdrawal", initiated because of a "defect" in "your product" known to exist by the Named <br />Insured or the Named Insured's "executive officers", prior to the inception date of this Coverage Part <br />or prior to the time "your product" leaves your control or possession. <br />c. Recall of any specific products for which "bodily injury" or "property damage" is excluded under <br />Coverage A - Bodily Injury And Property Damage Liability by endorsement. <br />d. Recall of "your products" which have been banned from the market by an authorized government <br />entity prior to the policy period. <br />e. The defense of a claim or "suit" against you for "product withdrawal expenses". <br />DocuSign Envelope ID: 916066C3-990F-4046-B4DC-AA0CD8CDFB42