Following the February 3, 2023 derailment of 38 train cars carrying hazardous materials, resulting in a chemical spill and controlled burn in East Palestine, Ohio, several lawsuits have been filed seeking medical monitoring for people living in the affected areas.

Medical monitoring programs may allow for the early discovery and treatment of latent injuries even years after exposure to toxic substances, but such programs also present a substantial expense for any company. Medical monitoring claims may be covered by insurance, but coverage heavily depends on the underlying facts, policy language, and the law governing policy interpretation.Continue Reading Coverage issues for medical monitoring claims

At the end of January, the Rhode Island Supreme Court concluded that a pollution exclusion contained in a general liability policy did not bar coverage for a suit alleging that the policyholder’s negligence caused 170 gallons of home heating oil to leak into its customer’s basement resulting in property damage.  Regan Heating & Air Conditioning v. Arbella Protection Insurance Co., No. 2020-170-Appeal.

  • First, the court confirmed that context matters. Just because a substance can be a “pollutant” in some contexts does not mean that all losses alleging damage caused by that substance are excluded “pollution” claims. 
  • Second, the court recognized that a split in judicial opinions as to the meaning of a disputed policy term is “proof positive” of ambiguity – or, at a minimum, supports a finding that the policy is susceptible to more than one reasonable interpretation.

The Regan ruling is consistent with well-settled principles of policy interpretation. The onus has always been on insurance companies, who hold the drafting pen and the bargaining power, to use clear and unequivocal language to describe what is (or is not) covered. In the absence of clear language, or where reasonable minds could differ – as was the case in Regan – the policy is ambiguous and must be interpreted in favor of coverage.Continue Reading Rhode Island Supreme Court recognizes that context and case law matter in interpreting policy exclusions

At $40-70 billion in estimated insured losses, Hurricane Ian is the nation’s second most expensive natural disaster for the insurance industry. Less than two months later, Hurricane Nicole made landfall in Florida. Securing insurance coverage for these losses will be an important part of rebuilding and recovery.

Recently, Reed Smith’s insurance coverage lawyers hosted a webinar, “Maximizing Insurance Recovery after Hurricane Ian,” to answer several frequently asked questions policyholders ask (or should ask) to ensure maximum recovery after these natural disasters. We summarize a few of those answers below.

What type of insurance coverage applies? Property Damage? Business Income? Ordinance and Law? Service Interruption? All of the above?

Put simply, the answer is: It depends on the facts and the language of the policy, but one or more types of coverage may apply. For example, a policyholder may have property damage coverage if they sustained physical damage to buildings, business property (e.g., machinery, equipment, raw materials, etc.), or property of others in the policyholder’s control. That same policyholder may also have service interruption coverage if they experienced dislocation of utility or telecommunications service and suffered business income losses as a result.

All types of common coverages are discussed during the webinar, which can be viewed on demand.Continue Reading Hurricane Ian and Hurricane Nicole: Answering questions policyholders frequently ask (or should ask) to ensure maximum recovery