N.Y. Court Affirms Decision Striking Insurance Company Defense in Coverage Suit with Union Carbide

NEW YORK –– A New York appellate court has affirmed rejection of an insurer’s defense that it does not owe coverage to asbestos defendant Union Carbide because the company “expected” bodily injuries to occur to those using its asbestos-containing products.

In the Dec. 6 ruling, the Appellate Division of the New York Supreme Court noted that Union Carbide had provided enough evidence that it believed the use of asbestos products was safe under the right conditions.

Argonaut Insurance Co. disclaimed coverage to Union Carbide because the company expected, or intended, bodily injury claims arising out of exposure to asbestos.