On Friday, August 9th, an Indiana Court of Appeals reversed a trial court’s ruling and allowed an insureds’ claim for bad faith based on misrepresentations in the insurer’s quote for coverage to proceed to trial.
Continue Reading Bad Faith Insurance Quote Defeats Summary Judgment
Application
Product Recalls: Keeping Your Insurance Coverage Intact
By Michael S. Levine on
Posted in Property
Product recalls are on the rise in many industries. As regulatory and consumer protection standards are getting tougher, product supply chains are becoming more complex. This increases the risk of errors, defects and contamination at all levels of operation. Too often, these problems do not manifest themselves until after a product hits the market. All of this can lead to staggering expenses for food and product manufacturers facing the risks and realities of product recalls.
…
Continue Reading Product Recalls: Keeping Your Insurance Coverage Intact
Third Circuit Pours Salt In The Wound, Holds Heinz Policy Void Due To Application Misrepresentations
Posted on
Posted in Property
Last February, a Pennsylvania federal court ordered rescission of an accidental contamination and government recall insurance policy issued to the H.J. Heinz Company after Heinz sought $25 million from its insurer for its business interruption losses sustained due to lead in its baby cereal. The district court based the rescission on findings that Heinz materially misrepresented its claim history when it purchased the policy. Heinz claimed the incorrect information was an inadvertent error by its new Global Insurance Director. Although a jury agreed that Heinz’s errors were unintentional, the district court found that even unintentional material misrepresentations were sufficient to void the contract.
…
Continue Reading Third Circuit Pours Salt In The Wound, Holds Heinz Policy Void Due To Application Misrepresentations