A Closer Look at the CGL, Pt. VII; A Look at the Product Recall Exclusion (pt. 1)

Another “your product” exclusion contained in the CGL deals with the potential liability caused by product recall.  The exclusion’s purpose is to prevent the CGL insurer from becoming liable for this risk. 

I’ll explain this exclusion in two parts, starting with the when this exclusion applies.  Here is the specific policy language:
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This insurance does not apply to (title of subsection) recall of products, work or impaired property

… if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known of suspected defect, deficiency, inadequacy, or dangerous condition to it. 

Withdraw means “to take back or away,”[1] while recall is “an official order to return.”[2]  The former is a voluntary action while the second is an official order.  Both verbs are past tense, meaning each action is completed.[3]  “Market” is the most commonly used noun to describe the place or location where goods are bought and sold[4] while “use” is the “application or employment of something for some purpose.”[5]  The former implies that the good is still on the shelves while the latter connotes that the good has already been employed for some purpose. 

“Because of” is a conjunction, which means, “By reason of.”[6]  The words following the phrase justify why the good was withdrawn or recalled.  Here, there are three reasons:
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1. The good has a “defect” or, “an imperfection;”[7] the good is faulty.
2. “Deficient” means lacking a quality.[8]  Something is missing from the good such that it can’t perform as advertised.  The suffix -y means, “having the quality of.”[9]  The suffix converts an adjective into a noun.
3. “Adequate” means “satisfactory or acceptable,”[10] while the prefix “-in” means “not.”[11]
4. “Danger” means “perilous”[12] while the suffix “-ous” means “characterized by.”[13]  Put another way, the good is perilous.

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The purpose of listing a group of nouns which describe the problem is to case as wide a net as possible with the intention of incorporating all known possibilities – which this description does well.
 
 
 
 
 
 
      
   
 
 
 


[1] American Heritage Dictionary, Second College Edition, © 1985, p.1387

[2] American Heritage, p. 1032

[3] The Chicago Manual of Style, 16th edition, © 2010 p. 233

[4] The Concise Oxford English Dictionary 11th Edition, © 2005 p. 874 (“an arena in which commercial dealings are conducted.”)

[5] American Heritage, p. 1331

[6] Oxford p. 119

[7] Oxford, p. 375

[8] American Heritage p.375

[9] American Heritage, p. 1399

[10] Oxford, p. 16

[11] Oxford 717

[12] American Heritage, p. 365

[13] American Heritage, p. 861