Defending Claims for Environmental Damage Under First-Party Property Insurance Policies in the United States

Due to legislation and regulatory action in the United States, as well as public awareness of the dangers associated with hazardous waste, claims for environmental property damage have increased dramatically over the past two decades. By far, most of the ensuing coverage claims and litigation have targeted comprehensive general liability (CGL) policies. In recent years, however, policyholders have sought coverage for environmental damage under first-party property insurance policies.This article provides an overview of the first-party property insurance policy provisions frequently at issue with respect to environmental property damage claims and highlights United States court decisions construing those provisions. This article is concerned primarily with traditional “environmental” property damage, such as soil and groundwater contamination, although decisions discussing first-party coverage for toxic torts (including asbestos) are also included where applicable.This article also considers procedural and pre-suit issues, such as notice and suit limitation requirements, which often figure prominently in the context of first-party property insurance claims for environmental damage. The Geneva Papers on Risk and Insurance (2002) 27, 215–245. doi:10.1111/1468-0440.00165