Two FCCI Insurance units have argued in a Georgia federal court that they are not obligated to provide coverage to a machining company and steel fabricator involved in separate asbestos liability lawsuits. They contend that their policies’ exclusions for pollution, asbestos, and employer’s liability apply in these cases.
National Trust Insurance Co. and FCCI Insurance Co. have lodged a complaint for declaratory relief against Macon Machine Inc. and Midstate Steel Inc. The insurers claim that the allegations of loss of consortium in the lawsuits do not qualify as bodily injury under their commercial general liability and umbrella policies.
The coverage under dispute extended from April 2012 to April 2023. Notably, Midstate was not covered under a specific commercial package policy issued by the National Trust to Macon from April 2012 to April 2013.
Sylvia Ellis Represents Her Late Husband
The insurers’ filing details a lawsuit initiated by Sylvia Ellis in Illinois state court this September, representing her late husband, Don Ellis’s estate. She claims that his asbestos exposure from products manufactured, distributed, or sold by the defendants since 1966 led to his mesothelioma.
Her lawsuit includes allegations of negligence, willful misconduct, and loss of consortium, although it lacks specific details about when and through which products Don was exposed.
In a separate case filed in Georgia state court in January, Freddie and Janet Graham assert that Freddie developed lung cancer after being exposed to asbestos, specifically from a Midstate-manufactured steel fabricator, during his employment from about 1970 to 1990. Their claims include negligence, strict product liability, and loss of consortium.
The insurance policies in question, which name Midstate and Macon as insureds, feature a comprehensive pollution exclusion. This exclusion bars coverage for injuries claimed to result from the release of pollutants, including asbestos, defined as any irritant or contaminant like smoke, soot, or chemicals.
Additionally, the policies include an extensive asbestos exclusion, which denies coverage for any claims related to asbestos exposure under any legal theory, and an employer’s liability exclusion, which excludes coverage for injuries arising from employment with the insured.
The umbrella policies echo these exclusions for pollution and employer’s liability, with all but the policies from April 2018 to April 2020 including the asbestos exclusion.
