June 27, 2012 Articles

Coverage for Food Contamination under a First-Party Property Policy

Companies need to realize that contamination under a first party property policy is very different from pollution under a third party liability policy

by Robert D. Chesler

Contamination of a product during its preparation and processing is a major risk for food manufacturers and others. The decision in PBM Nutritionals v. Lexington Insurance Company, 724 S.E.2d 707 (Va. 2012) is instructive on both the types of coverage that are available and the pitfalls that can prevent a company from obtaining coverage.

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