Hanover Hit With Coverage Suit For Sandy Blackout Losses

Law360, New York (June 6, 2013, 2:16 PM EDT) -- Lighting equipment manufacturer Acolyte Industries Inc. slapped Hanover Insurance Group with a $1 million suit in New York state court Wednesday for business interruption coverage during Hurricane Sandy, claiming that a five-day blackout was caused by a power station explosion in addition to flooding.

Hanover's coverage denial letter never mentioned the well-publicized explosion at Consolidated Edison Co.'s East 13th Street substation in Manhattan but attempted to blame the power outage solely on an influx of water from the storm, according to the complaint.

The letter also...
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