---
title: "What Insurance Covers Defective Products?"
description: "Product liability may cover third-party injury or damage from a defective product; repair and recall costs are separate."
canonical: "https://spot.insure/insurance-faq/what-insurance-covers/defective-products"
page-type: "faq-question"
updated-at: "2026-09-25"
---

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# 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.

## Related Questions

- [What Insurance Covers Employee Lawsuits?](https://spot.insure/insurance-faq/what-insurance-covers/employee-lawsuits)
- [What Insurance Covers Wrongful Termination?](https://spot.insure/insurance-faq/what-insurance-covers/wrongful-termination)
- [What Insurance Covers Discrimination Claims?](https://spot.insure/insurance-faq/what-insurance-covers/discrimination-claims)
- [What Insurance Covers Employee Theft and Embezzlement?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-employee-theft)

## Related Coverage

- [Product liability](https://spot.insure/coverage/product-liability)
- [General liability](https://spot.insure/coverage/general-liability)

## Sources

1. [Commercial general liability insurance](https://www.iii.org/article/commercial-general-liability-insurance). Insurance Information Institute; Coverage A: Bodily Injury and Property Damage Liability; Purchasing commercial general liability insurance; Directors and Officers liability. Accessed 2026-09-25.
2. [Product liability, recall and contamination insurance](https://www.iii.org/article/product-liability-recall-and-contamination-insurance). Insurance Information Institute; Product liability; What could go wrong?; Covering the costs of a product recall. Accessed 2026-09-25.

More answers: [What Insurance Covers FAQ](https://spot.insure/insurance-faq/what-insurance-covers).

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