Insurers Prevail In $22M Cave Damage Coverage Battle

Law360 (January 3, 2020, 6:25 PM EST) -- The Eighth Circuit on Friday affirmed that a group of insurers is not obligated to cover $22 million in damage to an underground storage facility from a series of rockfalls, agreeing that the incidents didn't trigger the facility owner's building collapse coverage.

A three-judge panel said U.S. District Judge Brian C. Wimes got it right in October 2018 when he ruled that policyholder Interstate Underground Warehouse & Storage Inc. is not entitled to coverage from its primary insurer, Chubb Ltd. unit Westchester Surplus Lines Insurance Co., or four excess carriers.

Interstate had sought coverage for the 2014 rockfalls at its 2...

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