Insurers: Don’t Have to Cover Colorado Organic Dairy in Suit

June 16, 2008

Four insurers have asked a judge to declare they do not have to pay to defend or indemnify Aurora Organic Dairy against a lawsuit challenging claims about the dairy’s milk.

The lawsuit in question alleges the dairy’s milk doesn’t meet federal organic standards, a claim the Boulder-based dairy has repeatedly said is untrue.

Philadelphia-based ACE American Insurance Corp. and Indemnity Insurance Co. of North America, Chicago-based National Surety Corp. and Cincinnati-based American Insurance Co. filed a complaint Tuesday in U.S. District Court in Denver, asking a judge to declare that their coverage doesn’t apply to the lawsuit.

Dairy spokeswoman Sonja Tuitele said the company has other insurers.

“We purchase insurance coverage in good faith and are disappointed to learn that rather than providing the defense they’re obligated to provide, some of our insurers elected instead to file a lawsuit,'” she said.

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