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Auto Owners avoids paying insurance loss because product was seized by the government

The Torres Hillsdale Country Cheese, LLC, company sued its commercial insurer after a problem with listeria resulted in the recall of its product.  In the fine print of the policy, AutoOwners excluded coverage for damage to any stored business property if the property was seized by the government.  Since the recalled product was contaminated with bacteria, it was seized by the Department of Agriculture, apparently, and the Court ruled that this seizure denied the insured any right to recover for the loss of the stored property.
Thompson O’Neil, P.C.
309 East Front Street
Traverse City, Michigan 49684
Toll Free: 1-800-678-1307
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