What Insurance Covers Defective Products?
Product liability may cover third-party injury or damage from a defective product; repair and recall costs are separate.
A defect may cause no injury, or it may lead to a customer claim for injury or property damage. Product-liability coverage focuses on resulting claims; replacing stock or recalling units may require separate coverage.
Check products-completed-operations terms, product exclusions, limits, and recall protection. Ask how the policy treats damage to your own product versus other property.
