What is one of the bases for product liability under CGL coverage?

One of the bases for product liability under Comprehensive General Liability (CGL) coverage is strict liability. This principle holds manufacturers and sellers accountable for defective products that cause injury or harm, regardless of whether there was any negligence involved in their production. Under strict liability, the key focus is on the product itself and whether it is defective, rather than the intent or care exercised by the manufacturer or seller at the time the product was made or sold.

This means that if a product is found to be defective and causes injury, the injured party does not have to prove that the manufacturer was careless or negligent; they only need to demonstrate that the product was indeed defective and that this defect led to their injuries. This concept is vital in protecting consumers by ensuring that businesses are held to a high standard of safety and accountability regarding their products.

In contrast, the other options touch on different legal concepts. Indemnity refers to a duty to compensate for losses or damages. Contributory negligence involves a scenario where the injured party may have some degree of fault in the incident, which complicates liability claims. Vicarious liability relates to holding an employer responsible for the actions of an employee, which is a different area of liability unrelated to product defects. Thus, strict liability