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Simple English definitions for legal terms
own-product exclusion
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A quick definition of own-product exclusion:
An own-product exclusion is a rule in some insurance policies that says the insurance company won't pay for damage to a product that the insured person made, sold, or handled. For example, if a company makes a toy that breaks and hurts someone, the insurance company might not cover the costs of the injury because of the own-product exclusion.A more thorough explanation:
Definition: An insurance-policy provision that excludes coverage for property damage to a product that is manufactured, sold, handled, distributed, or disposed of by the insured.
Example: A company that produces and sells electronic devices has an insurance policy that includes an own-product exclusion clause. If one of their devices malfunctions and causes property damage, the insurance company will not cover the costs of the damage because it was caused by the company's own product.
This example illustrates how the own-product exclusion clause works in an insurance policy. It means that the insurance company will not provide coverage for any property damage caused by the insured's own product. This clause is commonly found in commercial general liability policies and is intended to protect the insurance company from having to pay for damages caused by the insured's own products.