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.
Coverage Guides Related to Business Insurance
Sources for Business Insurance Answers
- 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.
- 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.