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A Truckload of Trouble: Defining ‘Wetness’ Coverage

Oh, the ironies of insurance and disposable-diaper material. An FC&S Online subscriber recently contacted us about a claim in which a truckload of the absorbent material used to make disposable diapers was ruined by, of all things, wetness. The very thing the material was meant to absorb became its demise...

By Diana B. Reitz, CPCU | Updated on March 08, 2012

Oh, the ironies of insurance and disposable-diaper material. An FC&S Online subscriber recently contacted us about a claim in which a truckload of the absorbent material used to make disposable diapers was ruined by, of all things, “wetness.” The very thing the material was meant to absorb became its demise in this situation, and the insurance carrier denied the claim.

The reason for the denial? The Motor Truck Cargo Legal Liability coverage form excluded loss arising from a series of causes—such as spoilage, changes in texture, extremes in temperature, “wetness, dampness, dryness, corrosion or rust”—unless the loss resulted from specific causes. The causes that would trigger coverage for such things as wetness included fire, lightning, wind or hail. Water damage was not listed.

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