How does general liability insurance cover business liability, and how does it differ from product recall insurance ?

General liability (GL) insurance in Quebec and Canada generally includes product liability coverage, but it's important to understand its scope and limitations :

1. Standard CGL coverage : Your CGL insurance typically covers claims for bodily injury or property damage caused by your products to third parties.
2. Scope of protection : This coverage applies to cases where defective products, inadequate labelling, or insufficient operating instructions have caused damage.
3. Important distinction : Liability insurance generally does not cover the costs associated with product recalls. Product recall insurance is a separate policy.
4. Product recall insurance : This separate coverage pays for the costs of withdrawing defective or dangerous products from the market.
5. Limits and exclusions : Check the specific limits of your product liability policy and discuss potential exclusions with your insurance broker.
6. Risk management : Implement rigorous quality control and documentation procedures to strengthen your position in the event of a product-related claim.

It's essential to consult your insurance broker to assess your specific product liability needs as part of your CGL coverage. In addition, discuss the suitability of separate product recall insurance for your Canadian business based on your activities and the risks associated with your products.