Insurance, Hazardous Waste, and the Courts: Unforeseen Injuries, Unforeseen Law
Editors' Summary: In recent hazardous waste cases, courts have rejected liability insurers' attempts to limit their obligations for unforeseen hazardous pollution. Insurers have been forced to indemnify and defend policyholders for pollution damage arguably excluded from their policies, and have been held to pay the costs of complying with cleanup injunctions. The author reviews several recent cases and considers their implications for the parties, their insurers, and the continued role of insurance in hazardous waste control. He concludes that the uncertainty in the scope of insurers' liability in the aftermath of such cases will increase premiums or drive insurers from the market at the very time when government regulations are increasing the demand for hazardous waste coverage.