Innovative Recycling Cos. Battle Pollution Exclusions

By Christie Smythe

Law360, New York (March 17, 2010, 6:12 PM ET) -- Despite environmentally friendly aims, companies that recycle waste by converting it into products — turning tires into mulch or turkey offal into biodiesel, for instance — may find themselves on the hook for pollution claims even if they take out liability policies and alert insurers as to the nature of their business, attorneys and insurance brokers say.

Both Headwaters Inc., a company that repurposes coal combustion and other energy byproducts, and Changing World Techologies Inc., a now-bankrupt company that converts agricultural waste into biodiesel, have been...
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