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Insurance Coverage for Food Contamination Recall

7/28/2010 Articles

Recalls of food believed to be contaminated can be massively expensive for the companies required to implement them, and the availability of insurance coverage for such expenses is often disputed.

One recent complaint to raise this issue is Employers Fire Insurance Company v. Basic Food Flavors, Inc., filed on July 7, 2010 in the United States District Court for the District of Nevada.  In that action, Employers Fire seeks a declaration that its policy "contain[s] certain terms, provisions, limits, conditions, exclusions and endorsements that limit or preclude coverage to Basic Food with respect to losses, costs or expenses incurred as a result of the HVP Recall." 

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