Food Co. Says Insurer Won't Cover Steps That Saved Millions

Law360 (February 25, 2020, 6:40 PM EST) -- A food production company told a Massachusetts federal court Tuesday that an insurer is defying common sense by refusing to pay $2.2 million for steps it took to keep a plant operational during the cleanup of a wastewater discharge, because the insurer's pollution policy would have covered far greater damages if the plant had shuttered during the process.

Ken's Foods Inc., which makes salad dressings, said Steadfast Insurance Co. has refused to cover the more than $2.2 million it spent to prevent closing a Georgia salad dressing plant for cleanup after a December 2018 incident involving a "substantial" discharge of wastewater....

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