Does Product Liability Cover Design Defects?
Potentially, for covered injury or property damage caused by an alleged design defect; redesign and recall costs are separate.
It generally does not pay to redesign a product or recall unsold units.
Check listed products, design roles, sales territories, exclusions, limits, and defense-cost erosion. Preserve design and testing records and report a demand promptly.
Coverage Guides Related to Product Liability Insurance
Sources for This Answer
- Facts + Statistics: Product liability. Insurance Information Institute; Product liability insurance opening definition (manufacturer, distributor, or seller; defective condition causing personal injury or damage); Product recall insurance sentence. Accessed 2026-09-25.
- Product liability, recall and contamination insurance. Insurance Information Institute; Product liability opening (design/manufacture/distribute/sell; injury, property damage or death; added to GL or stand-alone); What could go wrong? (roles; directions/warnings); Covering the costs of a product recall; Contamination insurance. Accessed 2026-09-25.
- Commercial General Liability Coverage Form. ISO Properties, Inc.; specimen hosted by Hiscox; Recall exclusion p.5; Supplementary Payments pp.8–9; Section III limits p.10; V.16 and V.21 p.15, warnings/instructions continue p.16. Accessed 2026-09-25.