Where does Section C - Products Liability state that Defective Workmanship is covered?

  • There is no obvious place where Section C – Products Liability states that Defective Workmanship is covered.  However the cover is actually given through the definition of a Product.
  • It is important to remember that the definition of a Product includes items which the Insured did not necessarily sell. The Insured need only have altered or installed the item (i.e. worked on it) for it to be considered as being the Insured’s Product.
  • The policy defines a ‘Product’ as ‘any tangible property after it has left the custody or control of the Insured which has been … installed … altered or repaired by or on behalf of the Insured…’
  • Section C – Products Liability states that “The Insured is indemnified … against claims arising out of or in connection with any Product”
  • In other words,
    • there is cover for the Insured’s liability arising out of a Product, and
    • an item is a Product even if the Insured only worked on it (without necessarily selling or supplying it).
General Liability