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potential for coverage

The court in Fulton Boiler Works, Inc. v. American Motorists Ins. Co., 5:06-CV-1117, 2010 U.S. Dist. LEXIS 28756 (N.D.N.Y March 25, 2010), held that two CGL insurers were obligated to pay for the entire cost of defending thousands of underlying asbestos bodily injury claims, without any contribution from their mutual insured, because they could not [...]

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The well-known “potential for coverage” standard applied by most courts to determine whether a CGL insurer must defend a claim against its insured turns on whether the allegations in an underlying complaint support the potential for covered liability, regardless of the actual facts proven at trial. The court in Whittaker Corp. v. American Nuclear Insurers, [...]

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