Business Insurance
Product Liability & Completed Operations.
How products and completed-work claims get triggered, the separate aggregate that responds, and the contract endorsements distributors require.
What products and completed operations actually cover
Products coverage responds when a product manufactured, sold, distributed, or labeled by the insured causes bodily injury or property damage after it leaves the insured's control. Completed Operations responds when finished work — installation, construction, service — causes injury or damage after the job is done. Both sit inside the GL form's Coverage A but draw against the products-completed operations aggregate, which is a separate limit from the per-occurrence and general aggregate.
Contract-driven endorsements that matter
Distributors, retailers, and downstream resellers will almost always require to be added as additional insureds on the manufacturer's GL — and specifically on the products-completed operations side. Vendor's endorsements (CG 20 15) are the standard mechanism. Larger customer contracts will also require a waiver of subrogation, primary and non-contributory wording, and proof of products-completed operations limits separately from the general aggregate on the certificate of insurance.
What product liability does not cover — and why recall is separate
Standard products liability covers third-party bodily injury and property damage caused by your product. It does not pay for the cost to recall, replace, or repair the product itself, and it does not cover pure economic loss to a customer. Product Recall coverage is a standalone product (often subline of crisis management) that funds recall logistics, customer notification, and brand restoration. We place it separately when product, regulatory, or contract exposure justifies it.
Frequently asked questions
We're a distributor, not a manufacturer — do we need product liability?
Yes. Anyone in the chain of distribution — manufacturer, importer, distributor, retailer — can be named in a products suit. Most distribution and reseller agreements push the indemnification chain back upstream, but every link still needs its own products-completed operations coverage and a vendor's endorsement from the upstream party.
How does completed operations differ from products?
Products coverage responds to physical goods sold or supplied; completed operations responds to finished work — installations, construction, repairs, services. They share the same aggregate inside the GL form but answer different fact patterns at claim time.
Is product recall covered under our GL?
No. The GL pays for third-party injury and damage caused by a defective product, not the cost to pull the product from the shelf. Product Recall is a standalone coverage we place when manufacturing, food, consumer-goods, or device exposure justifies it.
How long does the long-tail exposure last?
Products and completed-operations claims can surface years after a product or project leaves the insured's hands — anchored to each state's statute of repose. We confirm the policy is on an occurrence form (not claims-made) so the policy in force when the work was done is the one that responds.