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Insurer has duty to defend toxic tort cases after policies expired

Illinois court finds insurers are responsible for defense, however groundless the claims.

By Rosalie L. Donlon | Updated on February 18, 2015

Many companies acquire other businesses to grow or expand their product lines. In some cases, those acquisitions also come with environmental hazards and potential lawsuits. Does an insurance company have a duty to defend a former insured in cases claiming that individuals were injured by exposure to toxic substances even though the exposure may have occurred before the insured owned the company? According to a recent case decided by the Appellate Court of Illinois, the answer is yes. [Ill. Tool Works Inc. v. Travelers Cas. & Sur. Co., 2015 IL App (1st) 132350 (Ill. App. Ct. 1st Dist. 2015)]

Illinois Tool, which manufactures and distributes tools, equipment and finishing systems, was insured by Travelers Casualty & Surety Company and Century Indemnity Company from 1971 through 1987. In 1993, as part of its expansion plans, Illinois Tool purchased a company that made welding products.

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