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Old 12-16-2018, 06:41 AM
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The_Polymath The_Polymath is offline
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Default Question about Product Liability Insurance

I am not sure if you guys have been following the news about the contamination of Talc Powder with Asbestos (Johnson & Johnson product)

Keeping in mind that they suppressed some of the early research on this problem (going back to the 70s) would their insurance carier cover some of the eventual claims (the talc powder that had small parts of Asbestos caused a range of cancers) or could the carrier argue that this was fraud (and thus pay nothing)?
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Old 12-16-2018, 11:20 AM
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Wouldn't be surprised if they did, or if they go to court over this.
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Old 12-17-2018, 03:14 PM
tommie frazier tommie frazier is offline
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can the carrier claims anything and avoid liability for it? in general, maybe. in asbestos cases...not sure they have had success
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Old 12-17-2018, 03:40 PM
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PeppermintPatty PeppermintPatty is offline
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Asbestos is an extremely long-tailed liability. There are probably relevant policies that predate that research in the 70s.

But for the later policies? I dunno, maybe. The courts have tended to rule that carriers are on the hook for asbestos, though. Ralph Blanchard has done an excellent presentation on "Mass Tort Reserving" several times, that points out that there are cases where carriers have been required to pay asbestos claims even though no one could find a policy. Maybe there was an old plaque that said "insured with XYZ for for 25 years", and even though the insured may only have purchased WC and not GL in some of those years, the courts ordered XYZ to pay as if there had been a liability policy, making up liability limits based on typical policies from the time.

So... maybe?
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Old 12-17-2018, 04:44 PM
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I could post my opinion, but don't want the AO to get subpoenaed imo.
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