A product liability clause providing that all claims, whenever made, arising out of the same prepared or acquired batch of the product, shall be treated as resulting from one occurrence. The ‘occurrence’ could be defective design, bench error, error in distribution, etc. The clause protects the insurer from multiple claims, all of which have a common cause, being treated separately for the purpose of the per-occurrence limit, or occurring in separate years for the purpose of the aggregate limit. In terms of a deductible, it may benefit the insured to have the individual claims aggregated.
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A clause in a Products Liability Insurance providing that all claims for injuries arising out of one prepared or acquired lot of the product resulting from a common cause, shall be considered as resulting from one accident an shall therefore be governed by the limit per accident.