This CLE course will discuss key insurance coverage issues for food contamination and product recall claims under CGL, property, and product contamination policies, the scope of coverage, coverage triggers, applicable conditions and exclusions, and policy language interpretation. The program will address both first- and third-party coverage issues from the perspectives of both policyholders and insurers.
High profile food contamination claims result first in devastating reputational damage and may be followed by a flood of class actions, shareholder suits, or criminal investigations. Claims result in regulatory investigations, expensive product recalls, and liquidity issues. Product contamination and recall claims impact every brand and business in the food supply chain, including farms, distributors, restaurants, grocery stores, food processors, and manufacturers.
For companies facing food contamination and recall crisis management events, insurance coverage is essential to mitigating losses and the inevitable liquidity crunch. CGL, property, stock throughput, and specialty contamination/recall policies could be triggered for different reasons and cover different types of losses in a contamination claim and recall event.
Coverage is very fact-specific and highly dependent on the policy language. Counsel for both policyholders and insurers must be prepared to understand the scope of these policies, coverage triggers, covered losses, relevant exclusions, and applicable conditions to best represent their respective clients in contamination and recall events and litigation.
Listen as our panel of insurance practitioners discusses the key coverage issues in food contamination and product recall claims. The panel will analyze the scope of first- and third-party coverage, coverage triggers, relevant exclusions, applicable conditions, and policy language interpretation under CGL, property, and contamination policies from both policyholder and insurer perspectives.
