Insurer Says Plant's Chemical Spill Suits Aren't Covered

Law360 (February 24, 2021, 4:15 PM EST) -- An insurance company said it doesn't have to cover potential third-party claims against a Kansas food and alcohol processing plant stemming from a chemical spill because the claims came after the company allowed its liability policies to lapse.

Allied World Assurance Company asked a Kansas federal court on Monday for summary judgment, arguing MGPI Processing Inc. canceled its Allied World insurance policies and didn't seek an extension of coverage before the lawsuits were filed late in 2018, making them ineligible for coverage.

According to the motion, in the immediate aftermath of the spill, Allied World covered the cost of some medical...

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