Coverage guide
What product liability insurance is designed to do.
The phrase “product liability” describes an exposure. The actual protection may sit inside a commercial general liability policy, a specialized products policy or a broader program.
The central coverage question
A typical products-completed operations claim alleges that your product caused bodily injury or property damage after it left your possession. Subject to policy language, the insurer may investigate, provide a defense and pay covered damages. A defective product by itself, the cost to replace it, lost profits and a recall are different questions.
Occurrence and timing
Many general liability policies respond to bodily injury or property damage occurring during the policy period, even if the product was sold earlier. Determining when injury or damage occurred can be disputed. Claims-made forms use a different trigger and may require continuous coverage, an appropriate retroactive date and timely reporting.
Defense costs and limits
Confirm whether defense is outside the limit or erodes it, whether a deductible or self-insured retention applies, and whether expenses fall within that retention. Products-completed operations claims usually share an aggregate limit; multiple claims arising from one batch or condition may interact with occurrence and aggregate language.
The product itself
Liability policies are not warranties. Exclusions commonly restrict the cost to repair, replace or restore your own defective product or work. Resulting injury or damage to other property may be treated differently. That distinction is central to product claims.
Territory and sales
Internet sales, exports, foreign manufacturing and customers outside the United States require careful review of coverage territory, suit requirements and international placements. A policy should not be assumed to follow a product everywhere it travels.
Product liability guidance