NY Ruling Curtails Insurers' Environmental Cleanup Exposure

Law360 (March 28, 2018, 9:25 PM EDT) -- New York's high court ruled Tuesday that a Chubb Ltd. insurer doesn't have to cover a gas company's environmental remediation costs for years when no pollution insurance was available in the marketplace, a decision that limits carriers' exposure to cleanup coverage claims by forcing policyholders to pick up the tab for such periods.

The New York Court of Appeals unanimously affirmed a state appellate panel's ruling rebuffing National Grid PLC subsidiary KeySpan Gas East Corp.'s call to apply a so-called unavailability exception to the pro rata insurance allocation formula, which is often used to sort out coverage for environmental contamination, asbestos...

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