8th Circ. Puts Insurers On Hook For Silo Damage

Law360, New York (January 4, 2011, 4:37 PM EST) -- The Eighth Circuit has ruled Ace American Insurance Co. and National Union Fire Insurance Co. of Pittsburgh, Pa., must indemnify Lexicon Inc. for part of the $4 million in damage caused by a silo collapse at a Trinidad iron plant.

The insurers must reimburse the Arkansas industrial installation company for damage to surrounding silos, equipment and iron product but not for the reconstruction of the collapsed silo itself, the U.S. Court of Appeals for the Eighth Circuit ruled Dec. 28.

The three-judge panel partly reversed a...
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