Why is the distinction between Your Product and Your Work important for coverage?

• A. It affects the pricing of the policy.
• B. It changes the liability limit.
• C. It influences BI/PD from defects in products or workmanship and interacts with completed operations coverage.
• D. It only matters for advertising injury.

Answer: (C)

Understanding how Your Product and Your Work are defined in a policy explains how liability for bodily injury and property damage from defects is handled and how completed operations fits into the picture. Your Product covers liability for injury or damage caused by a product after it has left the insured’s control, including defects in the product itself. Your Work covers liability for injury or damage that arises from the insured’s own work or the materials used, including defective workmanship, during the course of the project and into the completed operations phase. This distinction matters because it determines which portion of liability is triggered by defects—whether it stems from the product itself or from the insured’s work— and it directly interacts with completed operations coverage, which provides long-tail protection for injuries or damages that occur after the project is completed or the product is in use. In short, it influences BI/PD from defects in products or workmanship and how those risks are handled under completed operations.