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Cadmium-Laced Jewelry Could Expose Liability Insurers

The discovery of cadmium in jewelry is likely to lead to significant exposure for jewelry distributors and retailers, as well as their liability insurers.

By staff Writer | Updated on January 17, 2010

On January 10, 2010, the Associated Press reported results of laboratory tests of 103 pieces of low-priced jewelry manufactured in China and sold by American retailers. The AP determined that 12 of these pieces contained high levels of cadmium, a known carcinogen that is suspected to hinder brain development in young children. All of the items in question were found to contain cadmium levels of at least 10 percent, with some of the items containing cadmium levels in excess of 80 percent.

“The discovery of cadmium in jewelry is likely to lead to significant exposure for jewelry distributors and retailers, as well as their liability insurers,” says Joseph Bermudez, partner in the Denver office of Nelson Levine de Luca & Horst, a national law firm focused on the insurance industry, and experienced in crisis management, international food contamination and product recall issues. “It is also likely to raise numerous coverage issues.

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