What Does Batch Clause Mean?

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What does Batch Clause mean? Read on to discover the definition & meaning of the term Batch Clause - to help you better understand the language used in insurance policies.

Batch Clause

Batch Clause

A batch clause limits the amount of coverage to the per occurrence limits for all defective products that come from a single run or batch. If a manufacturer with a $1 million per occurrence products liability policy produces 10,000 defective products in one batch, all the claims from that arise out of that defective run are considered one occurrence. These "batch" clauses are generally found only in proprietary or manuscript forms.

We hope the you have a better understanding of the meaning of Batch Clause.

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