IV. The Three Exclusions
A. The “Your Product” exclusion
(1) Language of the exclusion
 Northbridge relies on the “Your Product” exclusion principally to deny coverage to Mori rather than to Essex. The “Your
Product” exclusion reads as follows:
This insurance does not apply to: . . .
i. Damage to “Your Product”
“Property damage” to “Your Product” arising out of any part of it.”
 “Your Product” is defined as
“any goods or products, other than real property, manufactured, sold, han-
dled, distributed or disposed of by” the insured.
 The words “arising out of any part of it” in the “Your
Product” exclusion refer to damage to the product because of
a defect in the product itself.
(2) Purpose and policy behind the exclusion
 Before analyzing the exclusion in light of the Peller claim,
it is useful to set out the general principles underlying it.
 The “Your Product” exclusion exists, at least in part, is to
ensure that the insurer does not become the guarantor of the
goods manufactured, sold, handled or distributed by an insured.
In other words, the quality of the vines at issue is a risk for Mori
to assume, not for the insurer to guarantee.
 As a general rule, CGL policies provide protection to the
insured when its products or actions injure someone or cause
damage to the property of others. To take a simple example, if an
insured sells a machine to a customer and the machine explodes,
thereby destroying the customer’s factory, the CGL policy might
respond to indemnify the insured for his liability for the destruction of the factory, but would not indemnify the insured for the
cost of replacing the machine it had sold to the customer.
 The principal was summarized in Alie v. Bertrand & Frère
Construction Co.,  O.J. No. 1360 (S.C.J.), at para. 297:
It is a well established principle of Canadian insurance law that compre-
hensive general liability policies are intended to protect the insured from
liability for injury or damage to persons or property of others; they are not
intended to pay for costs associated with replacing the insured’s defective
work and products, which are purely economic losses. In other words, CGL
policies are not performance bonds. They will not pay the insured to remove