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Simple English definitions for legal terms
design-defect exclusion
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A quick definition of design-defect exclusion:
A design-defect exclusion is a rule in some insurance policies that says they won't cover injuries caused by a product that doesn't work right because of a problem with its design, instructions, or advertising. It's like saying, "We won't pay for any harm caused by a product that was made wrong." This is just one of many exclusions that insurance policies can have, which means they won't cover certain things.A more thorough explanation:
Definition: A provision in some insurance policies that excludes coverage for bodily injury resulting from a product's failure to perform its intended function due to a defect or deficiency in its design, formula, specifications, instructions, or advertising materials.
Example: An umbrella policy for a toy manufacturer may have a design-defect exclusion that would not cover bodily injury resulting from a toy's malfunction due to a flaw in its design.
Explanation: This exclusion means that if a product fails to perform its intended function due to a design flaw, the insurance policy will not cover any resulting bodily injury. For example, if a car manufacturer's product has a design defect that causes the brakes to fail, resulting in an accident and bodily injury, the design-defect exclusion would prevent the insurance policy from covering the resulting bodily injury.