Commercial Insurance

Insurance company sued its policyholder based on “pollution exclusion” clause.

An insurance company sued its client, a plumbing and heating contractor, denying coverage resulting from an alleged carbon monoxide leak, insisting that the “pollution exclusion” of the policy applied. Molosky & Co. vigorously fought back for the contractor on the grounds that the contractor would never purchase a policy that would not cover its plumbing and heating business under a “pollution exclusion” policy. Molosky & Co. prevailed on its motion for summary disposition, and the insurance coverage applied.

Molosky & Co. successfully recovered over $20,000 for our client from its insurer for commercial equipment that failed.

Our client produces high-quality wood products. Crucial to our client’s operations are its high capacity vacuum kilns. While drying a large batch of bird’s eye maple, our client’s main kiln malfunctioned, trapping the entire batch inside. In order to save the wood (valued in excess of $30,000), our client tore open the kiln. Unfortunately, the fire destroyed the kiln. For over a year after the loss occurred, our client made no progress with convincing its insurer to pay for the kiln. Molosky & Co. reviewed the policy for all applicable coverage, researched the cost of replacement kilns, and presented our client’s claim to the insurer for prompt payment. After only two months, our efforts resulted in our client promptly receiving payment from its insurer for the upper-range replacement cost for a new kiln, plus incidental costs.