Specialty Insurers May Thrive On New Food Regs

Law360, New York (January 25, 2011, 3:17 PM EST) -- While the Food Safety Modernization Act could present a golden opportunity for specialty insurers offering coverage for food recalls, the jury is out on whether the policies can be comprehensive enough to outweigh costs, experts say.

The FSMA, signed by President Barack Obama earlier in January, expands the U.S. Food and Drug Administration's health and safety enforcement authority, increasing food companies' exposure to liabilities like recalls and plant closures.

Since typical commercial general liability policies tend to exclude recalls, a niche market for food recall insurance...
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