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Main image for Insurance for Food Recalls: Three Tips You Need to Know
Publications|Article

Insurance for Food Recalls: Three Tips You Need to Know

New Appleman on Insurance: Current Critical Issues in Insurance Law (Winter 2017)

12.1.2017

Whether prompted by contamination (E.coli, Listeria monocytogenes, Salmonella), adulteration (additives which affect foods’ volume, taste and/or shelf life), mislabeling (undeclared allergens), or other public health concerns, food and beverage recalls remain prevalent, costly events. The year 2015 alone saw approximately 625 food recalls announced in the United States and Canada, some of which cost businesses, including Fortune 500 companies, tens of millions of dollars. Even though food and beverage recalls are becoming more and more common, and their attendant costs can be daunting, many businesses lack adequate insurance coverage for such events. Further, businesses with adequate insurance may not appreciate the scope of available coverage or know how to maximize it in response to a recall. Such businesses frequently overlook avenues to pursue insurance coverage for costs and losses associated with recall events. The remainder of this article briefly discusses three often overlooked coverage strategies policyholders should explore in the event of a food or beverage recall. The article first will address insurance coverage for defense costs arising from the class certification stage of a class action lawsuit. The article next will address coverage for third-party claims seeking only medical monitoring. The article will end by addressing coverage for recall-related losses under first-party property insurance policies.

Click to read full article: Insurance for Food Recalls: Three Tips You Need to Know. (subscription required)

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Media item: Mario S. Russo
Mario S. Russo

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