Indalex Ruling Threatens Insurers With Greater Tort Exposure

Law360, Philadelphia (September 25, 2014, 7:48 PM EDT) -- The Pennsylvania Supreme Court's ruling not to review a decision finding that general liability policies can cover property damage and personal injury claims caused by a policyholder's defective products could significantly expand the insurance industry's duty to defend product liability suits, attorneys representing policyholders say.

The order rejecting an appeal in Indalex v. National Union Fire Insurance Co. of Pittsburgh, Pa., leaves intact a precedential Superior Court ruling from December taking a more expansive view of an insurer's obligations when commercial policyholders face product liability claims over their allegedly faulty or defective products.

In particular, the ruling found that a 2006...

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