Own-Product Exclusion Law and Legal Definition

Own product exclusion is a provision included in some commercial general liability policies which excludes coverage for property damage to a product that is manufactured, sold, handled, distributed, or disposed of by the insured.

The 'own product' exclusion does not apply to bar coverage of third-party claims for damage to property into which the policyholder's property or product has been incorporated. [Nat'l Union Fire Ins. Co. v. Puget Plastics Corp., 450 F. Supp. 2d 682, 699 (S.D. Tex. 2006)]