Product Contamination/Recall Insurance Symposium: "Past, Present, and Predictions"

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Jeff Weinstein of Mound Cotton Wollan & Greengrass will provide his unique historical perspective from over 29 years of claims handling, litigation, and policy drafting involving various "Crisis Management" coverages, including "Accidental Product Contamination," "Malicious Product Tampering," "Contaminated Products Insurance," and "Product Recall." He will discuss the purpose and function of this important and fascinating line of insurance since its origins in the 1980's, as well as the changes to these coverages initiated by the FDA Food Safety Modernization Act of 2011.

Mound Cotton will be joined by Michael Tocicki of Premier Insurance Services, and Michael Castillo of the forensic accounting firm of Meaden & Moore. Mr. Tocicki, has been adjusting Product Contamination and Product Tampering claims for over 15 years. Premier's adjusters have handled over 1,000 claims in this area, ranging in value from $50,000 to $50,000,000.

Mr. Tocicki will address issues that can arise at all stages of a typical claims handling process, such as: (1) identifying the failure mechanism that caused the loss event; (2) confirming with Underwriters the extent to which policy coverage applies to the loss; (3) capturing the information and documentation necessary to adjust the claim; (4) mitigating the loss by developing strategies to avoid or minimize additional recall costs and/or lost gross profits; (5) identifying potential "other insurance" contributions to the loss; (6) identifying third party liability aspects of the claim and potential subrogation targets; and (7) developing system and process improvements to avoid a similar future loss

Mr. Castillo will address quantifying first party Product Recall / Contamination losses and measuring the ensuing economic damages in accordance with the policy terms and conditions. Mr. Castillo's 30 plus years of reviewing and advising on the accounting aspects of these claims has allowed him to observe the various methodologies, trends and challenges in quantifying these losses. He will provide an in-depth look at specific Business interruption, product valuation, and expenses that are typically part of product recall/contamination claims. He will also discuss the mechanics of evaluating replacement cost of the recalled product, as well as penalties and fees associated with the recall.

A "hands-on" case-study will bring together many of the issues and concepts presented during the course of the day. Overall, these experienced panelists will provide insurance professionals and other industry insiders with a comprehensive overview of product recall / contamination claims and the pertinent issues facing this segment of industry today.

The Symposium will be rounded out with a provocative panel discussion featuring two Crisis Management underwriting managers, Denise Balan of XL Catlin and Scott Harper of Houston Casualty Co. The half-day seminar will begin at 1:00PM on October 1st at the Andaz Wall Street Hotel in New York City. A networking cocktail reception will be hosted at the Andaz following the program at 5:00PM.

Ronni Weiss
Mound, Cotton, Wollan & Greengrass LLP
One New York Plaza, 44th Floor
New York, NY 10004
Tel: 212-804-4232
Email: Rweiss(at)moundcotton(dot)com

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