Hartford Casualty Insurance Co. has filed a lawsuit in a federal court in Virginia against the Peanut Corp. of America to determine whether it must pay claims for victims affected by a nationwide salmonella outbreak. Hartford Casualty Insurance claims that one or more of the terms, conditions, exclusions or limitations in the policies “exclude or nullify coverage” for PCA for one or more of the salmonella claims. The insurer is seeking a declaratory judgment from the court to determine the extent of our obligation to the Peanut Corp. of America under their policies of insurance.
Hartford, Conn.-based Hartford Casualty Insurance, a subsidiary of Hartford Financial Service Group Inc., issued both a primary general liability policy and an umbrella policy to PCA. I understand the general liability policy provides limits of $1 million per occurrence and $2 million aggregate for bodily injury or property damage included within the “products-completed operations hazard,” section of the policy. The umbrella liability policy provides liability limits of $10 million per occurrence and $10 million in the aggregate in excess of the underlying insurance for bodily injury or property damage included within the “products-completed operations hazard.” Products-completed operations hazard relates to liability for products after they have left a policyholder’s premises.
Source: Business Insurance
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