August 2026 Insurance Update

With cyclospora on everyone’s mind, and a recent surge in Legionnaire’s cases in Manhattan, we thought it was only fitting to include in this month’s update insurance decisions involving a food recall and Legionnaire’s disease. We also include a pair of opioid cases.

Determining the number of occurrences can sometimes be a daunting task. The Sixth Circuit experienced this when it was asked to decide how many SIRs applied where 225 lots of salmonella-contaminated peanut butter were recalled.

Policyholders have challenged the scope of bacteria or fungi exclusions. An Arizona federal court considers whether the bacterial exclusion applies to a Legionnaire’s disease claim against a fitness club.

In our past updates, when we discussed opioid litigation, the issue was mainly whether the suits sought damages because of bodily injury. In this month’s update, we address other arguments insurers have raised. The North Carolina Business Court decides whether a supermarket chain was “legally obligated to pay damages” where only its corporate parent was on the hook for the settlement payment. And the Missouri Court of Appeals considers whether a drug manufacturer’s general marketing of opioids (not product-specific) falls within the meaning of “your product” for purposes of a products liability exclusion.

We hope you find these cases informative.