Product Liability for Manufacturers
Once a product leaves your facility, the exposure does not leave with it. A component or finished product can be alleged to have caused bodily injury or property damage months or years after it was sold.
Build the program around how the operation actually works.
Manufacturing insurance is not one policy. The right structure depends on the product, process, property, people, contracts and potential severity of a loss.
Important distinctions before renewal.
Does general liability pay to replace my defective product?
Often the central distinction is between damage caused to third-party property and the cost to repair or replace the insured’s own defective product or work. Policy wording and the facts of the loss control the answer, so a specific claim should be reviewed rather than assumed covered.
Is product recall the same as product liability?
No. Product liability generally concerns third-party injury or property damage allegations. Recall coverage is designed around certain costs of withdrawing or handling potentially defective products, subject to its own triggers and exclusions.
What makes product liability expensive?
End use, sales volume, claims history, product type, quality controls, contractual risk transfer, geographic distribution and the potential severity of a failure can all influence underwriting.
Coverage descriptions are general. Actual coverage depends on the specific policy forms, endorsements, limits, exclusions and facts of a claim.
Keep digging into the exposures that matter.
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