Failure to Perform Exclusion Law and Legal Definition

Failure to perform exclusion is a provision in some commercial general liability policies, which excludes coverage for the loss of use of undamaged property caused by the insured’s delay or failure in performing an obligation, or by a design defect or failure of the performance of a product or service as warranted or represented by the insured. However, this exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to the product or work after it has been put to its intended use.