The Smithfield Foods Inc. logo is displayed on cardboard boxes in the company’s pork processing facility in Milan, Missouri, USA (Photo: Daniel Acker / Bloomberg).
Every claim is different and some insurance policies can be difficult to interpret for certain situations. FC&S Expert Coverage Interpretation, the recognized insurance coverage interpretation and analysis agency for the P&C industry, makes it easy to find credible answers to your complicated insurance coverage questions. Analysis by our FC&S experts.
Publisher’s Note: This week’s question concerns the definitions of “printing services or products” and “misconduct” under an E&O directive.
Question: Our customer manufactured packaging according to industry standards for frozen meat products. The customer sold the packaging for frozen products for horizontal storage. The customer then loaded the packaging with non-industry standard products (placed fresh meat and stored the boxes vertically) and sold the products to third parties. Excess moisture got on the floor and oozed out.
The carrier is responsible for the property damage claim, but my customer is not paid for the $ 100,000 in boxes they made. Your customer was using the product according to industry standards from that point on. The carrier’s liability for typographical errors and omissions, including corrections to work, provides information about the product recall. Would this policy cover my client’s boxes?
– Wisconsin subscriber
Analysis: We cannot stress enough the importance of definitions for a policy. Definitions are special terms that give meaning to coverage under the policy. Therefore, they are of great importance in determining whether or not there is coverage for a particular claim under the policy.
Reply: For the answer to this week’s questions and answers, please log in to yours Interpretation of the FC&S expert coverage Account.
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