Contractor's Insurer Must Cover FirstEnergy In Gas Leak Suits

Law360 (September 16, 2020, 8:19 PM EDT) -- Valley Forge Insurance Co. must cover FirstEnergy's defense in lawsuits over a gas leak at a Pittsburgh-area power plant that killed or injured several contract workers, an Ohio federal judge ruled Wednesday, saying First Energy was an "additional insured" under the policy held by the workers' employer. 

U.S. District Judge Benita A. Pearson said that because policyholder Enerfab was implicated in the workers' lawsuits against FirstEnergy Generation LLC, Valley Forge had a duty to defend FirstEnergy in those suits even if the contractor wasn't being sued directly. FirstEnergy sued Valley Forge in the Northern District of Ohio in October, seeking a...

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