Jonathan M. Cohen and Kami E. (of Gilbert Randolph LLP) have published an article in the Corporate Counselor that should prove helpful to in-house counsel dealing with potential consumer protection claims – and they do a great job of dissecting and explaining related insurance issues:
Companies in virtually every sector of the economy have become targets of allegations that their business practices or products have injured consumers. These cases often arise as class actions, frequently exposing target companies to the risk of significant defense costs, liability, or a product recall. In the face of the ever-increasing risk of consumer protection claims, most companies have put into place risk management strategies that principally rely on a variety of insurance policies. All too often, though, when a company needs its insurance most, it finds that it does not get the protection that it expects. Instead, insurers frequently make every effort to evade payment under their policies.