Glossary

A product is the subject of product liability insurance; defined in the standard Insurance Services Office, Inc. (ISO), commercial general liability (CGL) policies to include property—other than real property—manufactured, sold, handled, distributed, or disposed of by the named insured or others involved with the named insured in the stream of commerce.

Production contracts are risk transfer techniques often used by farmers who raise livestock, such as poultry.

Production of documents means to produce or bring forward, show, or exhibit documents deemed to be relevant to a legal action and is in response to a request for production of such documents.

Products-completed operations is one of the hazards ordinarily insured by a general liability policy.

Products guarantee legal liability is a specialty insurance coverage that insures the liability of a manufacturer for damage to the product resulting from the product.

Products tampering insurance indemnifies the insured for loss of net profit, chemical analysis, recall, examination, transportation, destruction, and extra expenses incurred to regain market share following a malicious product tampering incident.

Product liability is liability for bodily injury (BI) or property damage (PD) incurred by a merchant or manufacturer as a consequence of some defect in the product sold or manufactured.

Product liability insurance provides protection against financial loss arising out of the legal liability incurred by an insured because of injury or damage resulting from the use of a covered product. It is a component of standard general liability insurance.

Product recall is a type of insurance coverage for the cost of getting a defective product back under the control of the manufacturer or merchandiser that would be responsible for possible bodily injury (BI) or property damage (PD) from its continued use or existence.

Professional liability refers to a type of liability coverage designed to protect professionals and businesses from errors and omissions in performing their professional services. This coverage can protect traditional professionals (e.g., accountants, attorneys) and quasi-professionals (e.g., real estate brokers, consultants). Although there are a few exceptions (e.g., physicians, architects, engineers), most professional liability policies only cover economic or financial losses suffered by third parties, as opposed to bodily injury (BI) and property damage (PD) claims that are typically covered under commercial general liability (CGL) policies. The vast majority of professional liability policies are written with claims-made coverage triggers, and the insurer's payment of defense costs reduces available policy limits.