A subline of general liability coverage for manufacturers, and to a lesser degree, contractors. This coverage protects the insured in the event of claims caused by products they have sold, distributed, produced, or handled. Coverage applies only to products that have been sold and are no longer in the insured’s possession, or operations that have been finished by the professional.

The liability exposure of the manufacturer whose malfunctioning products may cause injury or property damage or of the contractor whose failed structures or projects may do the same. Coverage of the exposure is a feature of the commercial general liability policy. The insurance does not in any way constitute a guarantee of either the insured’s product or work. Contrast with Premises and operations liability.

The liability exposure of the manufacturer whose malfunctioning products may cause injury or property damage or of the contractors whose failed structure or projects may do the same. Coverage of the exposure is a feature of the commercial general liability policy. The insurance does not in any constitute a guarantee of either the insured’s product or work. Contrast with “Premises and Operations liability.”

The product guarantee policy is designed to protect the insured against legal liability arising out of failure of products to fulfill their intended function. The policy will pay for (i) The cost of repairing or replacing a defective product, (ii) The cost of recalling defective products (iii) The financial losses caused by such products where there is no injury to or damage to property of third parties. Extension is available to pay for insured’s lost sales as a result of damage to the brand name of the product, advertising expenses already incurred, advertising expenses to re-launch the product etc.

The liability for bodily injury or property damage incurred by a merchant or manufacturer as a consequence of some defect in the product sold or manufactured or the liability incurred by a contractor after he has completed a job as a result of improperly performed work. The latter described part of products liability is called completed operations.

Product liability Insurance provides an indemnity to the manufacturers or distributors and/or components is respect of their liability for accidental damage or injury resulting from defects in their products Product liability Insurance also provides an indemnity to manufacturers and others against third party claims for personal injury or damage to property which arise from the purchase or use of product. Ordinary public liability policies concern themselves, in the main with accidents occurring on specified premises. Product liability Insurance policies deal with the liability that may arise wherever the claims arising from the utilization of the covered product manufactured, sold, handled, or distributed by the insured or other trading under his name if the accident occurs after possession has been relinquished to other and away from premises owned, rented, or controlled by the insured.

Refers to bodily injury and property damage that occur somewhere other than the insured’s premises, and involve the insured’s products or work, subject to the limitations and parameters specified in the Commercial General Liability Coverage forms.