Spears Manufacturing Company is taking Liberty Mutual Fire Insurance Company to court, alleging the insurer failed to step up when property damage claims hit.
In a complaint filed in the United States District Court for the Central District of California, Spears – a manufacturer of chlorinated polyvinyl chloride (CPVC) pipes and fittings – claims Liberty Mutual breached its obligations under two commercial general liability policies. The dispute centers on the insurer’s alleged refusal to defend, indemnify, and settle two lawsuits tied to property damage at construction projects in Louisiana and Colorado.
According to the complaint, Spears purchased general liability coverage from Liberty Mutual for the periods spanning August 2018 to August 2020. Each policy carried a $1 million per occurrence limit and a $2 million aggregate limit, with defense costs covered outside those limits. The policies, as quoted in the filing, required Liberty Mutual to “pay those sums that [Spears] becomes legally obligated to pay as damages because of … ‘property damage’” caused by an “occurrence”—defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” Liberty Mutual was also obligated to “defend [Spears] against any ‘suit’ seeking those damages.”…