Understanding Design-defect Exclusion: Key Legal Insights

Q: Does the design-defect exclusion apply to all products?

Yes, it applies to any product covered under a general liability insurance policy.

Q: Can I still claim damages if the design caused an injury?

Generally, no. If the injury was due to a design defect, coverage is typically excluded unless another covered cause contributed to the damage.

Definition & Meaning

The design-defect exclusion is a clause found in commercial general liability insurance policies. It specifies that the policy does not cover bodily injury or property damage that arises from a product's failure to perform as intended due to flaws in its design, formula, specifications, instructions, or advertising materials. This means that if a product causes harm because of a design issue, the insurance will not provide coverage for that incident.

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Legal Use & context

This term is primarily used in the context of insurance law and product liability. It is relevant in civil litigation, particularly when disputes arise over insurance claims related to defective products. Users may encounter this term when dealing with claims against manufacturers or when seeking to understand their coverage options. Legal forms related to insurance claims and product liability can be found on platforms like US Legal Forms, which provide templates drafted by attorneys.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A manufacturer produces a toy that is designed with sharp edges. If a child is injured while playing with the toy, the manufacturer's general liability insurance may deny coverage for the injury due to the design-defect exclusion.

Example 2: A company sells a kitchen appliance that malfunctions because of a flawed design. If a fire occurs as a result, the insurance may not cover the damages if the cause is determined to be a design defect. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State	Notes
California	Strict liability applies, making it easier for plaintiffs to prove design defects.
Texas	Requires proof of a safer alternative design to establish a design defect.
Florida	Follows the consumer expectation test to determine if a product is defectively designed.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Difference
Design defect	A flaw in the product's design that makes it unsafe.	Design-defect exclusion specifically refers to the insurance coverage denial for such defects.
Manufacturing defect	A defect that occurs during the manufacturing process.	Manufacturing defects are typically covered by insurance, unlike design defects.

Common misunderstandings

What to do if this term applies to you

If you find yourself dealing with a claim related to a design defect, it is essential to review your insurance policy carefully. Consider seeking assistance from a legal professional to understand your coverage and options. You can also explore US Legal Forms for templates that may help you manage your situation effectively.

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Quick facts

Design-defect exclusions are common in commercial general liability policies.
They specifically exclude coverage for injuries or damages caused by design flaws.
Coverage may still apply if the damage results from a different, covered cause.

Key takeaways

Frequently asked questions

What is a design-defect exclusion?

It is a clause in insurance policies that excludes coverage for injuries or damages caused by design flaws in a product.