No Coverage For Losses Over Failed Production Of Bottled Beverage, Panel Affirms

Mealey's (November 5, 2015, 9:14 AM EST) -- BOSTON — A Massachusetts appeals panel on Nov. 2 affirmed a lower court’s ruling that an insurance policy’s faulty workmanship exclusion bars coverage for an insured’s losses arising from the failed production of 40 million bottles of a milk-based specialty drink (H.P. Hood LLC v. Allianz Global Risks US Insurance Co., No. 14-P-1605, Mass. App.; 2015 Mass. App. LEXIS 175).

(Opinion available. Document #13-151112-004Z.)

In November 2008, Abbott Laboratories and H.P. Hood LLC entered into a “contract packaging agreement,” under which Hood would produce at least...
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