Glulam Products Liability: Why Your GL Policy Isn't Enough

If you manufacture glue-laminated timber, you carry general liability insurance. But does it actually protect you when one of your beams fails in a structure?

For most glulam manufacturers, the answer is no — and they don't find out until a claim is denied.

The Products Exclusion Problem

Standard commercial general liability policies contain what's called a "your product" exclusion. The language varies by carrier, but the effect is the same: once your glulam member leaves your facility and becomes part of a completed structure, any claim arising from that product is excluded from your GL coverage.

This means:

• A contractor sues after your beam fails a load test and delays the project → excluded
• A building owner files a claim after delamination causes a roof panel to fail → excluded
• A structural failure causes property damage to the building interior → excluded

The GL policy that feels like protection is, in fact, a gap the size of the structural members you build.

What Products Liability Actually Covers

Products liability insurance is designed specifically for this exposure. A properly structured products liability policy covers:

• Bodily injury caused by your manufactured glulam members after they leave your plant
• Property damage arising from defective product — delamination, adhesive failure, dimensional error
• Defense costs when a contractor, building owner, or their insurer names you in a lawsuit
• Completed operations coverage that extends years after delivery

For a glulam manufacturer, this is the most important line on your insurance program.

Real Claim Scenarios

Scenario 1: Beam failure during construction. A contractor installs your glulam ridge beam. During framing, it cracks under load — well below its rated capacity. The contractor sues for project delay costs, equipment downtime, and the cost of the replacement beam. Your GL carrier denies the claim: it's a products claim.

Scenario 2: Post-completion delamination. Five years after a sports complex opens, the roof glulam shows visible delamination. The building owner hires an engineer who attributes it to an adhesive application error at your plant. The resulting property claim and business interruption suit easily reaches seven figures. Your old GL policy: excluded.

Scenario 3: Adhesive chemistry error. A batch error in your resorcinol-formaldehyde adhesive leads to a production run with inadequate bond strength. You recall 40 beams. Your GL policy covers premises liability — not the product recall or the downstream claims from the beams already installed.

Who Needs Products Liability

If you manufacture glulam for any of these applications, you need products liability:

• Commercial and industrial buildings
• Sports facilities and arenas
• Bridges and transportation structures
• Custom architectural applications
• Residential heavy timber

How CCA Places Glulam Products Liability

Contractors Choice Agency works with specialty timber markets that understand the engineering behind glulam, the QA processes that reduce risk, and the claims history of the industry. We can place:

• Combined GL + Products programs with unified limits
• Standalone products liability for manufacturers with existing GL
• Higher limits (up to $25M+ with umbrella/excess) for large-volume producers
• E&S market placements for manufacturers with prior loss runs

If your current GL policy hasn't been specifically reviewed for the products exclusion, call us. It takes 15 minutes and could save your operation from an uncovered seven-figure claim.