You Can’t Keep it Bottled Up: Defective Bottle Cap = Defective Bottled Product

The Appeals Court of Massachusetts held that a first-party property policy’s ensuing loss provision did not restore coverage for the non-defective contents of a bottle rendered unsaleable by defective bottle caps.  Since the product contained in the bottle could not be separated from the defective bottle cap, the whole product was defective and excluded from coverage.

In 2008, a manufacturer entered into an agreement with a company to manufacture a milk-based shelf-stable protein drink designed to require refrigeration only after the bottles are opened. To …

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