Does General Liability Cover Defective Products?
Usually not the cost to repair or replace the defective product itself. CGL may cover certain resulting third-party injury or property-damage claims, subject to the form.
A product defect can lead to different kinds of claims. The ISO CGL specimen excludes property damage to the insured’s product arising out of that product, and it excludes some damage to impaired property caused by a product defect. It separately describes bodily injury and property damage liability, which may apply to a covered third-party loss caused by a product. Whether that grant applies depends on the allegations, policy period, and exclusions.
The price of replacing the defective item, inspecting units, or withdrawing goods from the market should not be assumed covered by product liability. Review the “your product” definition, products-completed operations limit, recall exclusion, and endorsements. Tell the insurer whether you manufacture, import, label, distribute, or resell the product, since those roles and the product class can affect the quote and wording.
Related Coverage
Sources
- Commercial general liability insurance. Insurance Information Institute; What commercial general liability insurance covers; Coverage A, B and C; Additional liability coverages to consider. Accessed 2026-09-25.
- Commercial Insurance Guide. California Department of Insurance; Commercial General Liability; Commercial Automobile; Workers Compensation; Commercial Property. Accessed 2026-09-25.
- Commercial General Liability Coverage Form, CG 00 01 12 07. ISO; specimen hosted by Hiscox; Coverage A I.A pp.1–5; Coverage B I.B pp.6–7; Who Is An Insured II pp.9–10; Limits III p.10; Conditions IV pp.10–12; Definitions V pp.12–16. Accessed 2026-09-25.
