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Something’s fishy: Scallops spoiled, but will coverage provide the net?

When a cargo of scallops was spoiled in transit, but there was no obvious cause, an insurer challenged whether this was an 'occurrence' under the policy.

By Steven A. Meyerowitz, Esq., Director, FC&S Legal | Updated on May 17, 2017
Seafood, especially shellfish, are one of the food categories that is most vulnerable to spoiling, usually from not keeping the temperature constant while the seafood is in transit or storage. (Photo: Shutterstock)

This story is reprinted with permission from FC&&S Legal, the industry’s only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.

An appellate court in Massachusetts, reversing a trial court’s decision, has ruled that a seafood processing facility was entitled to insurance coverage for claims that nearly 60,000 pounds of scallops had spoiled while in its possession, even though the cause of the damage was unknown.

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