Product Liability Insurance for Small Businesses in Canada

Product-liability insurance can cover a Canadian business’s defence and legal liability when a product allegedly causes bodily injury or property damage, subject to the policy. The coverage is often part of a commercial general liability (CGL) policy or package, but it may also be added or structured differently. It usually does not function as a warranty for the defective product itself or automatically pay recall costs. Product liability is a label, not the coverage test. Read the declarations, insuring agreement, definitions, products-completed-operations provisions, exclusions and endorsements together. A retailer, importer, distributor and manufacturer can all be named in a product lawsuit even when only one designed the product.