Securing Coverage for Product Recalls

In the event of a product recall, a host of factors come into play, including litigation initiated by the manufacturer against a supplier, distributor or food processor that allegedly committed an act that caused the recall. After judgment was entered in favor of Atlantic in the negligence action, R...

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Bibliographic Details
Published in:Risk management 2019-07, Vol.66 (7), p.10-11
Main Authors: Pudell, Steven J, Lacey, John P, Yousef, Christina
Format: Magazinearticle
Language:English
Subjects:
Insurance claims
Insurance companies
Insurance coverage
Insurance policies
Insurance premiums
Liability insurance
Litigation
Negligence
Policyholders
Product recalls
Seafood
State court decisions
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Summary:In the event of a product recall, a host of factors come into play, including litigation initiated by the manufacturer against a supplier, distributor or food processor that allegedly committed an act that caused the recall. After judgment was entered in favor of Atlantic in the negligence action, RSI and Hanover filed cross-motions for partial summary judgment in the insurance coverage litigation. The Massachusetts Appeals Court reversed a finding for the insurance company, finding that Hanover was bound by the determination in the underlying action "that the damage to the scallops was due to RSI's negligence, not as part of the ordinary work process and not the result of any intentional conduct."
ISSN:0035-5593