WELDERS WIN MARYLAND POLLUTION RULING

Maryland’s highest court has handed a victory to the welding industry by ruling that the scope of the pollution liability exclusion in a business insurance policy does not encompass welding rod liability. In Clendenin Brothers, Inc. v. United States Fire Insurance Co., the Maryland Court of Appeals ruled that a total pollution exclusion in U.S. Fire Insurance Company’s commercial general liability policy does not relieve the insurer of its duties to defend and insure Clendenin Brothers Inc. against welding liability claims.

The law firm of Dickstein Shapiro Morin & Oshinsky LLP represented the policyholders and the Gases and Welding Distributors Association.

“The economic impact of this decision on the welding industry cannot be overstated,” said Rick Doyle of GAWDA. “Many of our members are mired in disputes with insurers over coverage for welding claims. The Maryland court recognized that insurance companies have an obligation to pay the costs to defend and resolve these claims.”

“This case is critical to any company facing insurer arguments that pollution exclusions in commercial general liability insurance policies preclude insurance coverage for non-traditional environmental liability,” said Katherine J. Henry of Dickstein Shapiro.

Topics Pollution