Lynac Commercial Liability Insurance

Lynac purchase $2M Commercial General Liability insurance.

If its products cause a fire (which is nearly impossible with LFP batteries), the occurrence will be covered.” 

Short answer: **Yes—likely covered under Kensun’s Commercial General Liability (CGL) policy**, if the fire was caused by a defect in Kensun’s battery and the claim is for **third-party property damage or bodily injury** (e.g., damage to the customer’s boat).

But there are important nuances.

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## When CGL *would* cover the fire claim

If all are true:

* The battery had a **manufacturing/design defect** (e.g., internal short → thermal event)

* The battery was **used/installed as intended**

* The claim is for **damage to the boat or other property**, or injury

? Then it falls under **Products-Completed Operations** in CGL:

* Boat repair/replacement costs

* Damage to surrounding equipment

* Injury claims

* Legal defense

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## What CGL usually does **NOT** cover

Even if the battery caused the fire:

* ❌ Cost of replacing Kensun’s battery itself

* ❌ Recall or preventive replacement campaigns

* ❌ Pure product failure without resulting damage

* ❌ Damage due to improper installation or misuse

Those require:

* Product recall insurance

* Warranty reserve

* Or installer liability

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## Key factor in your scenario: **installation**

You wrote: *“its customer installed its batteries in boat”*

Coverage depends on cause:

**Covered (Kensun liable):**

* Battery internal failure

* BMS defect

* Cell defect

* Terminal failure

* Enclosure failure

**Not Kensun CGL (installer liable):**

* Wrong cable size

* No fuse

* Loose terminals

* Charging system incompatibility

* Ventilation blockage

* Mounting error

Then installer’s liability responds.

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## Another nuance: “your product” exclusion

CGL pays for **damage caused by the product**, not the product itself.

Example:

* Fire destroys boat → covered

* Burned battery → not covered

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## Practical marine-OEM requirement

Boat OEMs typically require battery suppliers to carry:

* Products-Completed Ops included

* $1M/$2M limits

* Additional insured

* Primary & non-contributory

* Waiver of subrogation

So yes—this scenario is exactly why marine OEMs require supplier CGL.

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## Bottom line for your exact question

If Kensun battery defect → boat fire → boat damage:

✅ **Covered by Kensun CGL (products liability)**

❌ Battery replacement itself not covered

If improper installation caused fire:

❌ Kensun CGL not primary

? Installer liability applies

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If you want, I can map this specifically to Lynac vs dealer vs boat OEM liability chain (very relevant for your MasterCraft/Chaparral work).