Food lawyers should understand the relationship between the commercial general liability policy and the product liability insurance.
The major costs of a recall won’t be covered by a CGL policy, that’s product liability. The injured party must get paid which is why companies must have contamination and recall insurance. This can be a trap for the unwary lawyer. Pay careful attention to third-party liability in recalls and read all vendor agreements with retail grocery and food service downstream clients. Most vendor agreements subject suppliers to very significant recall charges. This video reviews recall and contamination insurance, as well as third-party audits and testing.
Woodhouse Shanahan PA
Charles F. Woodhouse
- Attorney with Woodhouse Shanahan PA
- Practice focuses on U.S. food law and regulation, Food Safety Modernization Act (FSMA), compliance, produce safety, food import regulation, food recall management, food industry risk-based preventative controls, and the regulation of food contact packaging materials
- Author of Chapter on International Regulation of Food and Food Contact Materials in the American Bar Association’s “Food Law: A Practical Guide” (2021)
- J.D. degree, Rutgers; M.B.A. degree, Wharton; M.S. degree in food safety, Michigan State; M.S. degree in packaging, Michigan State; B.A. degree, Dartmouth; current graduate student in soil and water sciences, research focus: pathogen contamination of fresh produce via soil and irrigation water transmission vectors, University of Florida
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