Baby Food Recall Covered Under Insurance Policy

Insurance companies typically argue that a policyholder's liabilities arising out of a product recall are only covered, if at all, under a specialized product recall policy, and not under more widely purchased standard-form general liability policies. A recent federal court decision has rejected these arguments, and held that a general liability policy was triggered to defend an action against a policyholder alleging liability for incorporation of the policyholder's tainted ingredient into the claimant's finished product, resulting in a need to recall the finished product. Read more here.