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The $210M chicken lawsuit

general liability

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CBC recently did a series of tests across a few fast food chains, and found that the Subway chicken sandwich consisted of only 50% chicken, and the rest was fillers. CBC says that the tests were administered by independent and credible experts.

Subway announced that they are planning to sue CBC for their defamatory and false statements. The total price tag of the lawsuit?  $210M! Quite likely CBC will not end up paying anywhere close to that, but they will need to defend themselves in court. That is where a good insurance policy will come in handy.

The typical General Liability policy would respond in such a situation. A very important component of the policy is legal defense costs. A business trying to defend themselves could rack up very high legal bills. You want an insurance policy that would cover such costs so you can put on a proper defense. Two specific features are important when looking at the defence cost coverage. First, you want defense costs “outside the limit” so that your legal bills do not reduce your liability limit. Second, you want the policy to pay as the bills come due, not just once the case is settled.

Moral of this story: get insured! If you are unsure about what you need, reach out to us to discuss your options.

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About Zensurance

Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on digitizing businesses and technology startups. We understand what it is to work with new technology, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business.

If you have specific questions about your business insurance, please visit us as www.zensurance.com or email us at info@zensurance.com and we will find the answers for you.


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