Admiral Must Cover Broken Boiler Defense: 5th Circ.

Law360, New York (November 20, 2009, 2:14 PM EST) -- Reversing a lower court, a federal appeals court has found that Admiral Insurance Co. must provide defense coverage to industrial boiler maker Wellons Inc. for damage caused by one of its oil heating systems that malfunctioned and led to the shutdown of a Martco Ltd. building product factory.

The U.S. Court of Appeals for the Fifth Circuit on Thursday reversed one of two rulings by a district court concerning Admiral's coverage obligations, finding that the claims at issue were covered by Wellons' policy and not barred...
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