Insurer Must Defend Drilling Company Against Negligence Claims, 5th Cir. Affirms

NEW ORLEANS — An insurer must defend a drilling company against a lawsuit accusing it of negligently failing to properly drill a well on a Texas farm because the alleged property damage occurred within the policy period, a 5th Circuit U.S. Court of Appeals panel has affirmed.

In an April 12 opinion, the panel further found that not all the alleged property damage arguably falls within the policy’s two exclusions, triggering a duty to defend.

BITCO General Insurance Corp. and Monroe Guaranty Insurance Co. issued commercial general liability insurance policies to 5D Drilling & Pump Service Inc. The BITCO policy …