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

How Products Liability Lives Inside Your CGL Policy

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

This coverage applies to bodily injury occurring after the customer leaves the premises, with "products" defined broadly as tangible items sold, distributed, or served — all food and beverages included — regardless of whether contamination originated in the kitchen, with a supplier, or with a delivery vendor.

The products-completed operations aggregate operates independently: it's not reduced by premises liability payments, tracked separately from the general aggregate, and resets fresh each policy period.

When Standalone Coverage Actually Makes Sense

Food manufacturers (not typical restaurants) selling packaged goods through retail channels need limits exceeding $10,000,000 for national distribution exposure. Expanded catering operations running substantial off-premises, multi-venue service may need separate catering liability for the extended products exposure. Cloud kitchens and ghost kitchens operating exclusively through third-party delivery platforms have unique risk profiles that sometimes fall outside standard restaurant CGL and may need standalone coverage.

What CGL Products Liability Does and Doesn't Cover

Covers: bodily injury from food consumption, property damage from products, medical expenses and legal defense, settlement and judgment amounts.

Does NOT cover: business-to-business disputes, contractual liability claims, product recall costs (requires separate recall insurance), or economic losses without bodily injury.

For traditional restaurants, the products-completed operations component within a CGL policy carrying a minimum $2,000,000 aggregate is generally sufficient and accepted by virtually all venue contracts and lease agreements requiring proof of products liability coverage — verified through an ACORD 25 Certificate of Insurance.