September 9, 2016

A customer suffered an injury while eating some food at our insured's restaurant. The insured has the standard CGL form and endorsement CG 24 07, products/completed operations hazard redefined. Would the med pay coverage apply in this situation?

Ohio Subscriber

CG 24 07 is designed primarily for establishments that serve food and beverages for consumption on their business premises. When attached to the CGL form, the endorsement redefines the products/completed operations hazard to include products consumed on the premises where they are sold. Med pay coverage is excluded for bodily injury included within the products/completed operations hazard, so this claim would be excluded under the med pay section of the policy.

However, the endorsement does not exclude the products/completed operations hazard from liability coverage. Bodily injury claims arising from food or beverages being consumed on the insured's premises are subject to the products/completed operations aggregate limit rather than the general aggregate limit.