Insuring Against Disaster: Coverage for Product Recalls

In recent months, it has seemed that barely a week has gone by without the announcement of a major product recall, whether it be of pet food (tainted with a wheat gluten additive), toothpaste (containing poisonous diethylene glycol, a solvent used in antifreeze that imparts a sweet taste), millions of children's toys (the subject of four major recalls, several of which involved lead paint), almost half a million light truck tires (lacking a safety feature that guards against tread separation), or 3.6 million Ford cars, trucks, and SUVs (containing a cruise control switch linked to vehicle fires). Recalls have become so common of late that satirical magazine <i>The Onion</i> 'reported' in late July that shares of Constitution Solutions, LLC ('COSO') 'fell sharply Tuesday after several Eastern bloc constitutions written by COSO were recalled due to loopholes that allowed Vladimir Putin to re-form the Soviet Union.' Stockwatch, <i>The Onion,</i> July 26-Aug. 1, 2007, at 2.

32 minute read September 27, 2007 at 11:35 AM
By
Marialuisa Gallozzi and Seth A. Tucker
Insuring Against Disaster: Coverage for Product Recalls

In recent months, it has seemed that barely a week has gone by without the announcement of a major product recall, whether it be of pet food (tainted with a wheat gluten additive), toothpaste (containing poisonous diethylene glycol, a solvent used in antifreeze that imparts a sweet taste), millions of children's toys (the subject of four major recalls, several of which involved lead paint), almost half a million light truck tires (lacking a safety feature that guards against tread separation), or 3.6 million Ford cars, trucks, and SUVs (containing a cruise control switch linked to vehicle fires).

This premium content is locked for LawJournalNewsletters subscribers only

ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LawJournalNewsletters

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts
Subscribe Now

Already have an account? Sign In Now

For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.

NOT FOR REPRINT

© 2026 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Continue Reading

How Courts Interpret and Apply the Interplay Between the Bankruptcy Code and Medicare Program Act

The combination of increasing operating costs and uncertain government reimbursement funding continues to place health care providers under financial pressure, and in many cases, financial distress. Given the importance of Medicare/Medicaid funding of claims under provider agreements with the federal government, how courts interpret and apply the interplay between the Bankruptcy Code and Medicare Program Act determines the disposition of hundreds of millions of dollars of claims for reimbursement that support the health care system.

April 30, 2026

AI Transparency: Clear Explanations Matter More Than Disclosure

As AI becomes embedded in everyday business and legal operations, organizations are confronting a new expectation: simply disclosing AI use is no longer enough. A critical shift is taking place in the legal industry: transparency is no longer just about disclosure; it’s about comprehension.

April 30, 2026