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Spoiled Rotten: Courts Are Split on Coverage for Contaminated Foods and Products

By Joseph F. Bermudez, Suzanne Meintzer and Samantha Evans
January 30, 2009

In a series of recent cases addressing coverage for contaminated foods and similar losses, jurisdictions have split on the availability of insurance. Courts excluding coverage have relied on language traditionally used to exclude business and product-related losses, including the “your product” and “impaired property” exclusions. Other courts have rejected the application of these exclusions if it is unclear that the damage was to the insured's product and if the cause of the damage is not inherent in the product itself.

'Your Product' Exclusion

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