2 Lessons From Missouri All-Sums Insurance Ruling

By Ronald Puhala, Helen Franzese and Rebecca Haworth (March 30, 2021, 6:06 PM EDT) -- In pollution property damage claims, it is not unusual for the pollution to result from both covered and uncovered sources.

Policyholders have argued that even where the pollution results, in part, from an uncovered source, the carrier is obligated to pay for the entire remediation under an all-sums allocation.

In the recently concluded litigation Northrop Grumman Guidance and Electronics Company Inc. v. Employers Insurance Co. of Wausau, the Missouri Court of Appeals, Western District, addressed in its decision last year the issue of whether, under an all-sums allocation, an insurer may segregate an assured's damage to comingled groundwater pollution by covered...

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