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Products Liability at Restaurants

A restaurant was insured under a CGL with the CG 24 07 attached. A customer broke a crown eating a BBQ sandwich. The adjuster denied the $285 medical payments claim due to the CG 24 07. Subsequently, they denied the liability claim on the basis that, once the product has been turned over to the consumer, it is no longer the insured's product. What's going on here and where is Rod Serling when you need him?

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