Products Liability — Insurance Claims Definition
Liability
Legal liability for bodily injury or property damage caused by a product after it leaves the insured's control.
Products liability is part of CGL Coverage A for many manufacturers, distributors, and retailers. Claims include design defects, manufacturing defects, and failure to warn. Recall expenses may need separate product recall coverage.
Examples
A defective appliance starts a house fire; the manufacturer faces products liability from the homeowner.
Common Mistakes
Assuming GL covers voluntary recalls or pure economic loss without physical injury — often excluded or limited.
