Expect the best; prepare for the worst. (Editor's Prologue).It could be the next tobacco. Or, from the insurance industry's point of view, the next mold mold, name for certain multicellular organisms of the various classes of the kingdom Fungi, characteristically having bodies composed of a cottony mycelium. The colors of molds are caused by the spores, which are borne on the mycelium. . As lawsuits filed against fast-food restaurants and food manufacturers for transgressions including contributing to obesity obesity, condition resulting from excessive storage of fat in the body. Obesity has been defined as a weight more than 20% above what is considered normal according to standard age, height, and weight tables, or by a complex formula known as the body mass index. and mislabeling mislabeling, n 1. the inaccurate identification of a product in which the label lists ingredients or components that are not actually included within the product. 2. products continue to increase, many insurers and brokers are following the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. closely. "We haven't seen any restrictions being put on our clients' liability policies, but it certainly could happen," said Greg Benefield, national practice leader for the Willis Restaurant Practice, a part of global insurance broker Willis Group Holdings Ltd. "Insurers need to have a good understanding of the risk that is present." The key to whether insurers are "affected is the likelihood of a court decision holding the defendants, and ultimately their insurers, responsible for damages. "It all depends on a ruling from case law," Benefield said. "When case law happens, insurers will have to respond quickly, as they did with the construction industry in response to the mold lawsuits." Insurers, attorneys and professors discuss their concerns about the food lawsuits from all sides of the issue in "Food Fright," our cover story on page 24. Some members of the insurance industry predict a ruling against a restaurant or a manufacturer could create an opportunity, for new insurance products. The 1993 Jack in the Box ground beef tragedy spawned a new insurance product that covered other restaurants in a franchise for lost profits after such an incident, Benefield said. "There could be other financial products that will grow out of the fast-food lawsuits," he said. But, for the most part, insurers need to work with members of Congress and others to improve the tort tort, in law, the violation of some duty clearly set by law, not by a specific agreement between two parties, as in breach of contract. When such a duty is breached, the injured party has the right to institute suit for compensatory damages. environment that supports this type of lawsuit lawsuit: see procedure; tort. , Benefield said. "Until tort reform, there's no light at the end of these suits," he said. The food lawsuits "could be a significant danger," Benefield said. "We won't know until case law." Sally Whitney is editor. You may reach her at (908) 439-2200, Ext. 5340, by writing to A.M. Best Co., Ambest Road, Oldwick, NJ 08858, or by e-mail at sally.whitney@ambest.com. The e-mail address See Internet address. e-mail address - electronic mail address for Best's Review is bestreview@ambest.com. |
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