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A food manufacturing facility suffers an identical contamination of product 10 years apart with an exact DNA match of the same Salmonella strain.
The insured disposed of equipment from two complete production lines and sealed off that side of the production plant. The resulting USD 20 Million claim included that extra expense, asset loss costs, cost of the recalled inventory, recall expenses, and loss of gross profits.
Avoiding inevitable costly litigation and overcoming initial differing expectations in terms of damages, a settlement was quickly reached on a compromise basis with both insurer and insured. They left satisfied and with a stronger relationship, which ultimately led to successive policy renewals.