Tag Archives: Product Liability

by | August 13, 2012 · 6:24 am

Hospitality Industry Legal Risks: Restaurant Owners Need To Obtain "Product Liability And Completed Operations Insurance" To Cover "Gluten-Free" Menu Items

“…a growing trend toward “gluten-free” menu items at America’s restaurants and catered events is increasing the demand for product liability and completed operations insurance, designed to protect food-service businesses against lawsuits arising from bad reactions to food products…”

The “gluten-free” trend is helping many establishments appeal to millions of Americans who are seeking gluten-free options for a variety of reasons, including gluten sensitivities (claimed by up to 10 percent of Americans, according to the National Institutes of Health) and celiac disease (diagnosed in about 1 percent of the U.S. population, or 3 million people). While offering more options for these customers makes for good public relations, it also opens the door to a new level of potential liability.

While any restaurant could face a lawsuit arising from alleged food poisoning or food allergies, those promising “gluten-free” menu items are at even greater risk of a lawsuit if a customer should choose these options and still have a reaction. Because there are currently no standards that define exactly what constitutes “gluten-free,” some restaurants may be promoting a “gluten-free” product that is prepared in the same area as foods containing gluten, raising the potential for cross-contamination. While many people with sensitivities may not have reactions to small amounts of gluten, others with higher levels of sensitivity could have a severe reaction, raising the potential for lawsuits.

Thankfully, food service businesses — including restaurants, catering businesses, and other food service providers — can protect themselves against the high cost of lawsuits by purchasing a type of insurance known as “product liability and completed operations” coverage. This insurance not only covers lawsuits related to gluten reactions, but also those related to other food allergies, food poisoning, or other injuries or damages caused by the products a restaurant or caterer sells.

For more:  http://www.restaurantnews.com/gluten-free-trend-spurs-demand-for-restaurant-liability-insurance/

4 Comments

Filed under Food Illnesses, Health, Insurance, Liability, Management And Ownership, Risk Management

Tagged as , , , , , ,

by | April 27, 2012 · 7:02 am

Hospitality Industry Health Risks: Two Wisconsin Women File "Salmonella Sushi Lawsuit" After Eating Sushi Rolls At Local Restaurant; Any Party In "Chain Of Distribution" Potentially Liable Under Product Liability Laws

Food-poisoning cases like the Salmonella sushi lawsuit generally fall under product liability laws. Any party in the product’s chain of distribution — including manufacturers, retailers, and middlemen — can potentially be held liable, depending on the source of contamination.

“…distributors may have removed the packaging before selling it to restaurants, which may not know they’re serving a potentially contaminated product, the Wisconsin victims’ lawyer told MSNBC…”

In a Salmonella sushi lawsuit filed last week, two Wisconsin women, 22 and 33, claim they were severely sickened after eating tuna sushi rolls at a local restaurant, MSNBC reports. The sushi rolls allegedly contained ground yellowfin tuna with Nakaochi Scrape.

California-based Moon Marine USA has recalled 59,000 pounds of raw, ground yellowfin tuna from India, which was packaged as “Nakaochi Scrape AA” or “AAA.”

But distributors may have removed the packaging before selling it to restaurants, which may not know they’re serving a potentially contaminated product, the Wisconsin victims’ lawyer told MSNBC.

Salmonella infections generally lead to diarrhea, fever, and abdominal cramps within 72 hours, according to the FDA. Victims usually recover after about a week.

But the Wisconsin women’s infections were more severe, and required hospital treatment. One woman was diagnosed with an ulcerated colon, which her personal-injury lawsuit blames on contaminated Nakaochi Scrape.

Scientific tests show the Salmonella sushi victims were sickened by a rare type of bacteria called Salmonella Bareilly, the women’s lawyer said. Investigations are underway to determine where bacteria came from.

For more:  http://www.reuters.com/article/2012/04/25/tagblogsfindlawcom2012-injured-idUS319130664220120425

Comments Off on Hospitality Industry Health Risks: Two Wisconsin Women File "Salmonella Sushi Lawsuit" After Eating Sushi Rolls At Local Restaurant; Any Party In "Chain Of Distribution" Potentially Liable Under Product Liability Laws

Filed under Claims, Food Illnesses, Guest Issues, Health, Insurance, Liability, Management And Ownership, Risk Management

Tagged as , , , , , ,