For information on this issue see the designated article in the Bulletins.

The court cases in the Dec Page address coal dust as a pollutant, expenses incurred by the insured prior to notifying the insurer of a claim, the meaning of collapse, and coverage for an employee forgery claim.

In Kentucky , the court of appeals had to interpret the definition of “pollutant” with reference to the pollution exclusion and coal dust being spread over the property of plaintiffs. In the expenses incurred case, the insured spent money on the remediation of a site that was damaged by a leaking underground storage tank before notifying the insurer. The insured then sought reimbursement for its expenditures and the insurer declined. The Court of Appeals of Indiana reviewed the language of the policy and settled this dispute based on that wording. The U.S. Court of Appeals, Eighth Circuit, gave its opinion on the meaning of collapse in a case from Missouri . A refrigeration pipe fell from the ceiling in the insured's building and spread ammonia over the floor and walls. The insured said this was a claim covered by the collapse cause of loss wording in the policy; the insurer said it was not a collapse as defined. The court settled the dispute. In the last case, the insured car dealership was denied a performance bonus due to shady tactics by its employees. The insured sought coverage under its crime policy, claiming the actions of the employees amounted to forgery by improperly impersonating customers and submitting online surveys to the car maker that were used to qualify the insured for a performance bonus. The U.S. District Court in New Jersey addressed this issue.

Questions and Answers

An earthquake occurs cracking the ground; months later a tropical storm hits causing the ground to shift making the house uninhabitable; which is the cause of loss? See Earthquake then Storm. A gentleman owns several cameras that he once used in business.

The insured has retired, are the cameras still considered to be business property? See Cameras no Longer Business Property. A tree falls damaging the roof and rodents get into the home. Are the rodents excluded, or is damage covered since the tree was the cause of loss? See Fallen Tree and Rodents.

When rain blows in under a door, is that surface water or wind driven rain? See Surface Water versus Wind Driven Rain. During construction a nail punctures a pipe which causes a later loss. See Faulty Construction and Ensuing Damage. Keys are stolen and the insured wants the locks rekeyed. See Rekeying of Locks.

Equipment Breakdown Endorsements

In 2007, ISO changed the name of the Boiler and Machinery program to Equipment Breakdown to more clearly emphasize the broadness of the coverage provided by the program. The endorsements used to modify the program are identified and discussed in this article. See Equipment Breakdown Endorsements.