XL Group has launched a standalone automotive parts recall policy designed for suppliers in the automotive industry. The policy delivers a choice of coverage to respond to the increased exposures and liabilities related to automotive recalls, the company said.

Mark Hutton, the U.K. product recall underwriting manager of XL Group, said, “The rise of global automotive recalls has put vehicle manufacturers under pressure and they are increasingly looking to push the liability down the supply chain. The additional exposure to automotive recalls is creating a demand for a standalone product recall policy that addresses the associated financial risk and contractual requirements on suppliers.”

Mr. Hutton continued, “We are introducing this product to tackle the growing risks faced by this industry at a time when there remains a lack of insurance capacity dedicated to respond to the exposures. We anticipate demand to grow as we seek to provide the cover that the automotive parts industry increasingly needs.”