“Your Product” Exclusion and the CGL

We handle the general liability insurance for a company that manufactures seats for delivery vehicles. The company recently determined that faulty bolts had been used in some seats. The situation was discovered after the seats were sold and delivered to our insured's customers.

My client recalled the seats and repaired them. We know there is no coverage on the CGL form for the recall and repair process. However, my client has asked whether there will be future coverage problems if some of the seats are not returned and repaired, and, in the future, a faulty bolt snaps  which results in an injury.