Do I Need Separate Product Liability If I Have General Liability?

Restaurants with Commercial General Liability (CGL) insurance do not require separate product liability insurance because products liability coverage is automatically included within the standard CGL policy structure. The ISO standard CGL form integrates products-completed operations coverage as a component of Coverage A (bodily injury and property damage liability), allocating a separate products-completed operations aggregate limit typically equal to the general aggregate limit of $2,000,000.

This integrated structure means a single CGL policy simultaneously provides premises liability for on-site incidents and products liability for off-premises bodily injury resulting from food and beverage consumption.

How products liability integrates within CGL policies:

Automatically included in Coverage A structure
Separate aggregate limit ($2,000,000 typical) independent from general aggregate
Single policy premium covers both premises and products exposure
No additional underwriting required for food service products

Products liability within the CGL policy covers bodily injury occurring after the customer leaves the restaurant premises, with “products” defined as tangible items sold, distributed, or served including all food and beverages. The coverage applies regardless of whether contamination originated from the restaurant’s kitchen, suppliers, or delivery vendors, creating comprehensive protection for the named insured restaurant.

Products-completed operations aggregate operates independently:

Full policy limits available for food-related claims
Not reduced by premises liability claim payments
Separate tracking from general aggregate limit
Annual reset provides fresh coverage each policy period

Specialized circumstances requiring standalone product liability:

Food manufacturers (NOT typical restaurants):

Packaged goods sold through retail channels
Mass distribution exposure beyond local service
Limits exceeding $10,000,000 for national distribution
Business-to-business product sales

Expanded catering operations:

Substantial off-premises catering beyond restaurant service
Multi-venue serving operations
Separate catering liability insurance for extended products exposure
Higher volume third-party events

Cloud kitchens and ghost kitchens:

Exclusive third-party delivery platform operations
Unique risk profiles outside standard restaurant CGL
Non-traditional food service models
Possible standalone products liability requirements

Critical distinction: CGL vs. standalone products liability:

CGL products liability covers:

Bodily injury from food consumption
Property damage from products
Medical expenses and legal defense
Settlement and judgment amounts

CGL products liability does NOT cover:

Business-to-business disputes
Contractual liability claims
Product recall costs (requires separate recall insurance)
Economic losses without bodily injury

Standalone products liability policies include:

Economic losses beyond bodily injury
Brand rehabilitation expenses
Regulatory compliance costs
Broader business interruption coverage

For traditional restaurants, the products-completed operations component within a CGL policy with minimum $2,000,000 aggregate provides sufficient coverage as verified by Insurance Services Office standards and accepted by virtually all venue contracts and lease agreements requiring proof of products liability insurance.

Verification for venue contracts:

ACORD 25 Certificate of Insurance lists products-completed operations
Separate aggregate limit clearly stated
Additional insured endorsements extend products coverage
Meets standard venue and landlord requirements