Some insurance policies include an own-product exclusion, which means that the insurance company will not cover damage to a product that the insured person made, sold, or handled. For instance, if a company manufactures a toy that causes harm to someone, the insurance company may not provide coverage for the injury due to the own-product exclusion.
The own-product exclusion clause is a provision in an insurance policy that denies coverage for property damage caused by the insured’s own product. For instance, if a company manufactures and sells electronic devices and one of their devices malfunctions, resulting in property damage, the insurance company will not cover the costs of the damage due to the own-product exclusion clause. This clause is commonly found in commercial general liability policies and serves to protect the insurance company from having to pay for damages caused by the insured’s own products.
The own-product exclusion is a provision in insurance policies that excludes coverage for claims arising from the insured’s own products or services.
No, the own-product exclusion typically applies to general liability insurance policies, product liability insurance policies, and professional liability insurance policies.
The own-product exclusion is included to prevent insured parties from seeking coverage for claims arising from their own faulty products or services, as insurance is meant to protect against third-party claims.
In some cases, the own-product exclusion can be modified or waived through negotiation with the insurance provider. However, this is not always possible, and it depends on the specific terms and conditions of the insurance policy.
Some insurance policies may include exceptions to the own-product exclusion, such as coverage for claims arising from defective workmanship or faulty installation. It is important to carefully review the policy to understand any exceptions that may apply.
Yes, some insurance providers offer separate coverage options specifically tailored to cover claims arising from the insured’s own products or services. This can be beneficial for businesses that want additional protection beyond the own-product exclusion.
In such cases, the own-product exclusion would typically apply to the portion of the claim related to the insured’s own product, while coverage may still be available for the portion related to the third-party product.
While it is possible to challenge the own-product exclusion in court, the outcome will depend on various factors, including the specific language of the insurance policy and applicable laws. It is advisable to consult with a legal professional to assess the viability of such a challenge.
Aside from insurance coverage, businesses can also mitigate the risk of claims by implementing quality control measures, conducting thorough product testing, and providing clear warnings and instructions to customers.
No, the own-product exclusion can vary between insurance policies and providers. It is crucial to carefully review the terms and conditions of the policy to understand the extent of the own-product exclusion and any exceptions that may apply.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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