Appeals Court: Insurance Doesn’t Have To Pay For 2008 Burrito Recall

You might remember the Foster Farms Salmonella outbreak last year, which made hundreds of people sick. The company’s insurer, Lloyd’s of London refused to pay for their losses from the outbreak and following recall because the company waited a very long time before officially recalling any meat. The federal government was able to shut down poultry plants, but not recall the meat, since it wasn’t “contaminated” by any substances that you don’t normally find in chicken. An appeals court has ruled in a similar case that also involves Lloyd’s and an American meat company.