Mad Cow Disease Coverage Evaluation
Wednesday, February 4th, 2004 Liability Life & HealthMad Cow disease (bovine spongiform encephalopathy BSE), which first appeared in the United Kingdom in the mid-1980s, has now been detected in the United States. With the discovery of one dairy cow from a herd of 4,000 in rural Washington state infected with Mad Cow disease, comes far-reaching insurance ramifications and a complex tort issue. The economic costs associated with the discovery of a Mad Cow infected animal could easily be in the billions, as countries impose bans on imported U.S. beef and U.S. consumers avoid buying it. Still, the economic costs are very different from the insurance costs. The following is an overview on potential types of insurance coverages and the exposures involved: Animal Mortality (life insurance for livestock): Insurance would cover the market value of cattle in government-enforced slaughter, but such coverage is not typically taken out on the average cow. Usually it‘s taken out on special livestock of particularly high value
