The 'Your Product' Exclusion: When CGL Coverage Ends at the Product Itself

In December 2006, a building supply company in Shediac, New Brunswick sold 179 pieces of exterior vinyl siding to a residential property owner, with installation completed in July 2007. By June 2010, the siding had begun to blister and peel; the manufacturer replaced the defective sections at no charge. In 2012, the same failure recurred across the entire installation, and a contractor determined that all siding required removal and replacement.

The property owner commenced an action against the supplier in April 2013, claiming breach of contract and statutory warranty, and seeking $68,229.40 in damages. The supplier's commercial general liability insurer initially agreed to investigate but by October 2013 denied coverage, invoking a "your product" exclusion. The supplier contends the claim extends to collateral property damage—insulation, vapour barriers, structural components—that would fall within coverage.

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