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Unclear Policy Endorsement Makes Excess Insurer Liable for Fuel Spill

Source: https://www.claimsjournal.com/, December 21, 2020

Confusing language in a policy issued by an excess insurer puts the carrier on the hook for up to $5 million in clean-up costs after a policyholders’ tanker truck overturned and spilled its load of fuel, the 1st Circuit Court of Appeals ruled Friday.

The appellate panel reversed a decision by the U.S. District Court in Worcester to dismiss a lawsuit filed against General Star Indemnity Co. and ordered judgment in the policyholder’s favor. The 8th Circuit said a special hazards endorsement in the policy could be interpreted to bar coverage, or to guarantee certain kinds of coverage, depending on how it is read. Read more.

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