What is Systemic Defect | Insurance glossary by upcover

A Systemic Defect is a defect that is inherent in all products of a particular type, model, or design, rather than affecting only individual units or batches. Systemic defects typically arise from design flaws, material selection errors, or fundamental manufacturing process issues. Because they affect the entire product population, systemic defects may give rise to widespread liability exposure and often necessitate product recalls or redesigns.

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Related Term

Crisis Management Cover (Strata)

Business Continuity & Emergency Cover (Business Pack)

Crisis Management & Reputation Protection (Business Pack)

All Category

Financial

Legal

Insurance Documents

Fundraising

Employment

Policy

Risk Management

E&O

D&O

Commercial Insurance

Cyber

Compliance

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