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Coverage and Exclusions
3/6/2008 5:10:46 PM EST
Like Buttah . . . Just Maybe More Hazardous
Posted by Vivi Gorman
LexisNexis Insurance Law Center Staff
At least one popcorn maker vowed to remove the chemical diacetyl from its butter-flavored products after Occupational and Safety Health Administration initiated an investigation into the safety protocols at factories where the flavoring agent is used. Diacetyl, an artificial agent that creates the buttery odor and flavor in microwave popcorn and other products, has been linked to respiratory disease in workers at microwave popcorn processing facilities.
 
In October, a New York appeals court said for purposes of collecting insurance coverage for these suits multiple claims filed against International Flavors involved multiple “occurrences.” Another coverage suit involving International Flavors is pending in Wisconsin. 
 
Now, Givaudan Flavors Corp., the world’s largest producer of flavors and fragrances, according to Wikipedia, is seeking coverage from its liability insurers for several suits filed against it related to exposure to diacetyl and acetaldehyde. A few weeks ago, Givaudan, a Swiss company, filed a declaratory relief and breach of contract action in federal court in Cincinnati . Check out the March 6 issue of Mealey’s Insurance report for the details

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