Lloyd's Sues To Block Pacific Energy Volcano Claim

Law360, New York (December 13, 2010, 7:35 PM EST) -- Lloyd's of London has filed an adversary suit against bankrupt Pacific Energy Resources Ltd., asking a court to declare that its contingent business income insurance policy would not cover money lost when volcano eruptions caused the shutdown of an oil depot in Alaska.

The insurer said the policy in question only covered losses from actual physical damages that would cause a business interruption, and the damage sustained after the eruptions was minor and quickly repaired, according to the complaint, filed Friday in the U.S. Bankruptcy Court...
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