Products Liability Insurance

Products liability insurance is typically included within the products-completed operations coverage of a Commercial General Liability (CGL) policy. It responds to claims that a product manufactured, sold, distributed, or handled by the insured was defective and caused harm to a third party. Defects can be categorized as design defects, manufacturing defects, or failure-to-warn defects. The products-completed operations aggregate limit on the CGL policy governs the maximum payout for these claims during a policy period. In COI compliance, products liability is particularly relevant for vendors who supply materials, equipment, or manufactured goods to a project. Certificate holders verify that the products-completed operations aggregate is sufficient to cover potential product-related claims. Compliance platforms should track this sublimit separately from the general aggregate to ensure adequate protection against product defect exposures.