COMPLEX COVERAGE AND ENVIRONMENTAL ISSUES, INSURER LIABILITY AND BAD FAITH

Because of potentially staggering pollution cleanup costs and class action personal injury judgments, many insureds have turned to current and historical general liability policies, seeking coverage for their environmental liabilities. These claims raise numerous issues, including: whether the policies are triggered; whether the claims for cleanup costs constitute “property damage” or “personal injury;” whether there are any policy conditions or exclusions that bar coverage and whether it is possible to allocate to the insured or to other insureds.

Insurance companies facing these environmental claims know that their underwriters did not intend to provide coverage for these losses. Companies also know, however, that despite this underwriting intent, some courts have found coverage, since insurance is often the only available source of funds. Balanced against these competing realities is the fact that insurance is a business, which must be reasonably profitable yet accountable to its insureds, regulators and reinsurers.

The Stone & Johnson Coverage Group is sensitive to the realities of insurance, not only as a risk transfer technique, but also as a business. The Coverage Group provides cost-efficient, concise and timely coverage opinions to both primary and excess insurers. When disputes escalate into litigation, Stone & Johnson attorneys utilize state-of-the-art, computerized litigation support systems to efficiently handle large volumes of highly technical information. The firm’s attorneys are nationally known because of their involvement in many high profile cases, service on steering committees and their professional presentations. Stone & Johnson attorneys have played a significant role in the development of coverage law concerning late notice; justiciability and standing; known loss; no “occurrence”; no “suit”; no “damages”; lost policies; and allocation of damages among insureds and insurers.

The Stone & Johnson Coverage Group also defends carriers facing allegations of bad faith and punitive damages. Because of their rich experience in insurance coverage law, the Coverage Group can quickly identify unfounded claims within the context of both first-party and third-party losses. The firm has an outstanding record in this area of practice and serves as the exclusive regional “bad faith” counsel for several insurance companies.