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XL Insurance Launches 'Adulterated Ingredient Product Recall' Coverage

 — NEW YORK, June 29, 2010 - XL Insurance, the global insurance operations of XL Capital Ltd. , today announced the launch of its coverage enhancement for adulterated ingredient product recalls.

The product enhancement covers the recall of an insured's product caused by an ingredient that is subject to a recall notice even if there is no evidence that the insured's product itself would cause injury. For coverage to be triggered traditional Product Contamination policies require the insured to prove that their own product is contaminated and would cause injury. Consequently a company caught up in a nationwide recall of products caused by an adulterated ingredient may find its own products are not deemed "contaminated" under traditional coverage. This extension offered to policyholders in the US and Canada extends standard coverage to include the recall of the insured's products caused by an adulterated ingredient.

Ed Mitchell, Global Product Recall Manager for XL Insurance, said: "Nationwide recalls caused by adulterated ingredients in the supply chain are an escalating phenomenon due to the heightened focus on food safety by North American regulators. Last year, for instance, saw the biggest recall in US history when hundreds of products were recalled due to the inclusion of contaminated peanuts supplied by Peanut Corporation of America. Many companies found they were either uninsured or that their policies didn't apply when they recalled their product with contaminated ingredients.

"Our solution has been designed specifically to address the actual nature of this type of loss and plugs an important gap in the coverage provided by traditional policies."

Coverage in the US and Canada is provided via Lloyd's syndicate #1209, managed by XL London Market Ltd.

About XL Insurance
"XL Insurance" is the global brand used by member insurers of the XL Capital group of companies. More information about XL Insurance and its products is available at www.xlinsurance.com

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