Legal Definitions - own-product exclusion

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.