On July 11, a judge ruled that the fast-food chain Subway can be sued for misleading customers by claiming that its tuna products are indeed ‘100% tuna’.
The company was sued last year for allegedly using other fish species, chicken, pork, and cattle instead of the advertised “100% tuna” in its sandwiches.
The recent court ruling rejected Subway’s plea to dismiss this case, and granted the plaintiff a trial to prove her allegations.
Subway in its part has maintained the integrity of its products, and hopes to prevail in the lawsuit.
Regardless of the outcome of this case, Subway is currently facing heavy expenses in defending itself- from legal and court expenses, to the cost of defence, to payable compensation to the plaintiff.
To ensure that they don’t go into heavy losses when dealing with such cases, companies usually purchase Commercial General Liability (CGL) Insurance.
A CGL policy reimburses businesses for any losses incurred while defending claims of misleading advertisements, copyright infringement, injury or illness caused to a customer, and other liabilities.
CGL Insurance is one of the most comprehensive and basic insurance policies for businesses, especially large corporations that regularly face the risk of lawsuits.