Late last month, Toyota recalled about 2.3 million vehicles to correct sticking accelerator pedals and later, the car manufacturer temporarily suspend sales of eight models -- opening doors for potential litigation and insurance actions.

J. Kenneth Carter, a shareholder with Turner Padget Graham & Laney of Columbia, S.C., said the firm has already seen some legal claims filed and inquiries by law firms regarding the situation with an eye toward potential large and class-action lawsuits.

Class-action suits would most likely be over the fact that the vehicle has lost value, including loss of use, said Carter. An attorney in Florida is asking a judge to approve the first class action against Toyota, citing compensation for loss of use and diminished value.

"What this does is really create a world of coverage analysis based on the language of the complaint," said Matthew Cairns, president elect of DRI -- The Voice of the Defense Bar.

There is a huge self-insured component to the recall aftermath, said Cairns. Typically, manufacturers are self-insured in product cases. "At some level, often in the tens of millions of dollars, an insurance policy or policies are triggered" but the self-insured retention is usually enough to cover exposure in personal injury product liability cases, Carter said.

Self-insurance also comes into play with manufacturers of automobile parts, like Toyota's acceleration pedal. Bringing auto parts manufacturers to a claim depends on the state where a suit is filed, because some states believe a part loses its individuality once it is installed in the vehicle, Carter said.

Cairns said companies can purchase additional recall coverage, which covers the costs associated with the recall such as product replacement, loss of profits and public relations expenses. Mark Bunim, chairman of the mediation firm, Case Closure LLC, said he envisions Toyota has multiple layers of insurance in excess of its self-insurance and the company can expect their premiums to increase.

Bunim can also see claims made by dealers for loss of sales, business interruption, or rental car reimbursements. Carter said these issues will be decided within the small print of a dealer's franchise agreement.

Patrick C. Timoney, partner and insurance attorney at Nelson Levine deLuca and Horst, said insurance carriers and fleet owners should know claims "may not be limited to those where a 'sticky pedal' is reported because the source of the problem may not be mechanical but could be caused by a problem with the electrical or computer systems connecting the accelerator to the motor.

Direct claims involving accidents that caused personal injury or property damage may not be prevalent in the aftermath of the Toyota recall but the company could be brought in by other insurers on a third-party basis, said Bunim.

"I imagine general counsels at other insurers are looking at cases over the last six months to see if Toyota was involved, and possibly go after them," said Bunim. "It opens up a whole new door."

Before filing a subrogation claim, insurers will probably allow plaintiffs' lawyers to fight the battles related to validating alleged "intended acceleration" in some Toyota models. "They have time," Carter said.

In the meantime, Timoney is advising that carriers "should be undertaking a review of their losses" for opportunities in property damage and workers' compensation subrogation claims and contribution claims.

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)