Product Recall Insurance - Can you Protect Your Company's Reputation?

How Long Does It Take to Lose Your Reputation?

How fast does word of a recall spread? With a single decision in any EU Member State, notifications go out immediately across the entire European Union of a product recall. During one week in March, Germany recalled inflatable beach balls; Spain banned a mini-motorbike; Belgium recalled push toys for children; Poland did the same on a fishing set… and the list goes on and on.

Within minutes of the alert to the Rapid Notification System, your product could be recalled across all of Europe. The expenses are all yours - to say nothing of the potential damage to your reputation, not just in one country, but across all of Europe and, shortly thereafter, worldwide.

One recall can cost you the valuable reputation you have built up over the years. It can also cost you:

• Expense to ship the products
• Expense to notify customers and vendors of the recall
• Expense to hire extra staff to make the needed repairs
• Expense to dispose of the faulty components

…all on top of the expense of lost consumer and retailer confidence in your products and your company.

Is there a solution? Now there is. AIG Recall Insurance.

AIG Recall Insurance can protect businesses from the devastating effects of such recalls; covering the key expense areas and also providing the expertise of world renowned crisis management and publicity consultants to guide the company through the critical first few weeks of a product recall.

The speed of today's communication systems and worldwide media make this an issue you need to resolve now.

If you would like to know more about AIG Recall Insurance, AIG South Africa has the best Crisis Management Solutions to help you through your time of need.

Contact Absolutely Covered Brokers on +27 (0) 12 345 4101. Or click here to email us


AIG South Africa is a member of American International Group, Inc. (AIG), world leaders in insurance and financial services. AIG is the leading international insurance organisation with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

How safe is your generator installation?

The Dangers of Electrical or Portable Generators

The recent power failures have resulted in many Homeowners rushing out to buy generators and there has been much said recently in the media about the boom in sales for generator suppliers.

The question is how much does the average person understand about the dangers brought about by these electrical generators?

Firstly it must be noted that any Generator installed should comply with the South African National Standard (SANS 10142-1:2003) for the wiring of premises Clause 7: 12 which prescribes the minimum safety requirements for the installation of low voltage generators.

These Electrical Generators or Portable Generators are useful when temporary or remote electric power is needed, but they also can be hazardous. The primary hazards to avoid when using a generator are carbon monoxide (CO) poisoning from the toxic engine exhaust, electric shock or electrocution, fire and burns.

Every year, people die in incidents related to portable generator use. Most of the incidents associated with portable generators involve Carbon Monoxide poisoning from generators being used indoors or in partially-enclosed spaces with inadequate open air ventilation.

Carbon Monoxide Hazards

When used in a confined space, generators can produce high levels of Carbon Monoxide within minutes. When you use a portable generator, remember that you cannot see or even smell Carbon Monoxide. Even if you do not smell exhaust fumes, you may still be exposed to Carbon Monoxide fumes. Carbon monoxide at high levels can kill a person in minutes. Carbon monoxide (CO) is produced whenever any fuel such as gas, oil, petrol, diesel, wood, or charcoal is burned.

Hundreds of people die accidentally every year from Carbon Monoxide poisoning caused by malfunctioning or improperly used fuel-burning appliances. Even more die from Carbon Monoxide Poisining produced by idling cars. Fetuses, infants, elderly people, and people with anemia or with a history of heart or respiratory disease can be especially susceptible.

Check Your Insurance Policy

These are legal requirements and failure to comply with these requirements could possibly invalidate any home owners insurance should it be established that a fire or injury was caused as a result of the incorrect connection of the generator. This should be carefully checked with your Insurer or Broker and it should be declared on your policy and noted that you have now installed a generator.

IF YOU START TO FEEL SICK, DIZZY OR WEAK WHILE USING A GENERATOR ,
GET TO FRESH ARE RIGHT AWAY . DO NOT DELAY .

Follow these safety tips to protect against Carbon Monoxide (CO) poisoning.

Protection from CO Poisoning

• NEVER use a generator inside homes, garages, enclosed spaces, sheds, or similar areas, even when using fans or opening doors and windows for ventilation. Deadly levels of carbon monoxide can quickly build up in these areas and can linger for hours, even after the generator has shut off.

• Follow the instructions that come with your generator. Locate the unit outdoors and far from doors, windows, and vents that could allow CO to come indoors.

Electrical Hazards

• Generators pose a risk of shock and electrocution, especially if they are operated in wet conditions. If you must use a generator when it is wet outside, protect the generator from moisture to help avoid the shock/electrocution hazard, but do so without operating the generator indoors or near openings to any building that can be occupied in order to help avoid the Carbon Monoxide (CO) hazard. Operate the generator under an open, canopy-like structure on a dry surface where water cannot reach it or puddle or drain under it. Dry your hands, if wet, before touching the generator.
  

• If you have not had your generator wired into your premises by a qualified electrician only connect appliances to the generator using heavy-duty extension cords that are specifically designed for outdoor use. Make sure the wattage rating for each cord exceeds the total wattage of all appliances connected to it. Use extension cords that are long enough to allow the generator to be placed outdoors and far away from windows, doors and vents to the home or to other structures that could be occupied. Check that the entire length of each cord is free of cuts or tears and that the plug has all three prongs.
  

• Protect the cord from getting pinched or crushed if it passes through a window or doorway. ( Please note : we do not recommend that you use the generator in thisway and you should install the generator correctly using a licensed electrician).
  

• NEVER try to power the house wiring by plugging the generator into a wall outlet, a practice known as “backfeeding.” This is extremely dangerous and presents a possible electrocution risk to external workers and neighbors served by the same transformer. It also bypasses some of the built-in household circuit protection devices.
  

• A licensed electrician or registered electrical contractor must carry out the installation and must understand and have the experience with the requirements for the wiring of switches. Incorrect wiring of all the live, neutral and earth wires could be life threatening.
  

In addition when he has completed the installation make sure that he issues you an Electrical Certificate of Compliance. Failure to obtain such a certificate could invalidate any insurance claims arising as a result of electrical faults or accidents.

Fire Hazards

1. Never store fuel for your generator in the home. Petrol, Diesel, propane and other flammable liquids should be stored outside of living areas in properly-labeled, non-glass or breakable safety containers. Do not store them near any fuel-burning or heating appliance.
   
2. Before refueling the generator, turn it off and let it cool down. Fuel spilled on hot engine parts could ignite.
3. Be extremely careful should a power failure occur at night and never use a naked flame, matches or a candle near the generator or fuel tanks. Make sure you have a torch available for use when going to turn the generator on.
4. It is advisable to keep a small fire extinguisher in close proximity to the generator. A 4.5 Kg Dry chemical Powder (DCP) or 2 Kg Carbon Dioxide (CO2) fire extinguisher is recommended.