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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Insurance

Date & Time
  • event Date

    Tuesday, January 21, 2025

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00
CLE
ALL

This CLE course will discuss key insurance coverage issues for food contamination and product recall claims under CGL, property, and product contamination policies, the scope of coverage, coverage triggers, applicable conditions and exclusions, and policy language interpretation. The program will address both first- and third-party coverage issues from the perspectives of both policyholders and insurers.

Faculty

Arthur S. Garrett
Partner and General Counsel
Keller And Heckman, LLP

Mr. Garrett is Co-Chair of the firm’s national litigation practice. His practice focuses on insurance recovery with an emphasis on the representation of food industry policyholders. Mr. Garrett’s trial experience has taken him all over the U.S. to try cases in state and federal courts and mediate/arbitrate disputes on behalf of corporations and trade associations. He specializes in advising food companies on their liability insurance programs (including GL, D&O, E&O, excess, umbrella and specialized recall policies, such as product contamination insurance) and first-party property policies, including open marine/cargo insurance. In such matters, Mr. Garrett provides advice on the appropriate insurance coverage and the rights of policyholders in the event of a loss and in disputes with their insurance carriers. He also provides advice on appropriate risk transfer mechanisms (insurance and indemnity) in commercial transactions.

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Steve Kluting
National Director, Product Recall (Food & Beverage Practice)
Gallagher

Mr. Kluting, Esq., Gallagher’s national director of Product Recall (Food & Agribusiness practice), is an experienced corporate attorney and food industry executive focused exclusively on advising clients in the food and beverage industry, including restaurant and grocery chains. Using his experience as a “food lawyer,” certified HACCP manager and industry executive, he acts as a risk consultant to Gallagher’s food industry clients and restaurant chain operators, helping them better assess and manage their product contamination and recall exposure; navigate food safety incidents, government enforcement actions and product recalls; evaluate, design, negotiate and place product contamination/product recall insurance; and report to corporate boards regarding company food safety risks. Mr. Kluting spent more than 13 years as a member of a large, full-service law firm, many as a partner and co-chair of the firm’s food industry practice. He focused on serving FDA- and USDA-regulated companies, advising them on the impact of food laws and regulations, crisis preparation and management, M&A and risk management. More recently, Mr. Kluting worked as chief strategy officer for a family-owned food wholesaler and retailer. 

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Description

High profile food contamination claims result first in devastating reputational damage and may be followed by a flood of class actions, shareholder suits, or criminal investigations. Claims result in regulatory investigations, expensive product recalls, and liquidity issues. Product contamination and recall claims impact every brand and business in the food supply chain, including farms, distributors, restaurants, grocery stores, food processors, and manufacturers.

For companies facing food contamination and recall crisis management events, insurance coverage is essential to mitigating losses and the inevitable liquidity crunch. CGL, property, stock throughput, and specialty contamination/recall policies could be triggered for different reasons and cover different types of losses in a contamination claim and recall event.

Coverage is very fact-specific and highly dependent on the policy language. Counsel for both policyholders and insurers must be prepared to understand the scope of these policies, coverage triggers, covered losses, relevant exclusions, and applicable conditions to best represent their respective clients in contamination and recall events and litigation.

Listen as our panel of insurance practitioners discusses the key coverage issues in food contamination and product recall claims. The panel will analyze the scope of first- and third-party coverage, coverage triggers, relevant exclusions, applicable conditions, and policy language interpretation under CGL, property, and contamination policies from both policyholder and insurer perspectives.

Outline

  1. CGL policies
    1. Third-party coverage for bodily injury
    2. Third-party coverage for property damage
  2. First-party property policies
  3. Direct physical loss
    1. Contamination exclusion
  4. Product contamination/product recall policies
    1. Coverage triggers, including requirement of actual contamination? Gov’t action? Adverse publicity?
    2. Reimbursable losses
  5. Claims process and other considerations
  6. D&O coverage for recalls

Benefits

The panel will review these and other key issues and considerations:

  • Coverage for third-party injuries/damages
  • Coverage for first-party losses
  • Coverage issues and challenges for preventive recalls, adverse publicity and ingredient exposures