Insurance Recovery for Environmental Claims

A burgeoning practice area of McMahon DeGulis is Insurance Recovery for environmental claims. On behalf of two Dayton area clients, Greg DeGulis has recently recovered seven-figure reimbursement from insurance companies which issued general liability policies from the late 1950's through the early 1970's. In both instances, Greg worked closely with an insurance archeologist who uncovered evidence of insurance coverage including accounting ledger entries, letters from insurance brokerage houses and evidence from the Ohio Department of Insurance.

Recent Ohio case law mandates that secondary evidence is admissible to determine the existence of an insurance policy. Based on this case law, these clients discovered secondary evidence in order to convince insurance companies that the policies were issued to the respective clients. Because of the presentation of the specific, concrete evidence gathered by the insurance archeologist, the insurance companies were willing to negotiate settlements of defense and indemnity payments under these older general liability policies for environmental claims.

This case study highlights the power of pre-1972 general liability policies, which do not contain the so-called standard pollution exclusion. Through the use of insurance archeology and the presentation of evidence, which shows the occurrence of property damage during the policy period, these older general liability policies become a valuable asset.

For further information, contact Greg DeGulis at 216-621-1312, extension 103.

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