What Triggers First Party Coverage: Facts, Not Fear

The discovery of mad cow disease prompts a revisit of case law addressing the issue of whether the fear of contamination of a food product is physical loss or damage for purposes of first-party property insurance.

May 4, 2012

Law360, New York (May 04, 2012, 1:45 PM ET) -- In late April 2012, at a rendering plant near Fresno, Calif., a routine test of a dairy cow revealed the presence of Bovine Spongiform Encephalopathy (BSE), commonly referred to as "mad cow disease". The cow was one of 40,000 cows tested each year by the United States Department of Agriculture (USDA) for the disease and is the first discovered in the U.S. since 2006.

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