What Insurance Covers Defective Products?

Product liability coverage, often within CGL is generally the coverage line to examine for third-party injury or property damage attributed to a product. The policy responds only when its insuring agreement, definitions, and covered-cause requirements are satisfied; the line name by itself does not establish that a loss qualifies. A defective product may harm nobody, or it may cause injury or damage. Liability coverage focuses on resulting claims; withdrawing or replacing stock can require recall coverage.

Common exceptions include exclusions, sublimits, deductibles, and conditions specific to the insured property, claimant, or event. Different forms can treat closely related losses differently, so a quote summary or certificate is not enough to establish the complete terms. The policy and endorsements control.

For this exposure, check products-completed-operations terms, exclusions, limits, and separate recall protection. Ask the broker to point to the applicable grant and exception in the actual form, and verify who is insured, the policy period, limits, and claim-notice steps.