An Indiana appeals court ruled Wednesday that The Cincinnati Insurance Co. owes coverage for environmental claims that arose after its insured abandoned more than 100,000 tons of foundry sand on its lessor's property, a decision that could force other insurers to cover environmental damage under personal injury policy provisions, attorneys said.
The appeals court sided against the insurer after determining that the personal injury definition in International Recycling Inc.'s commercial general liability policy was ambiguous, and that IRI's abandonment of the foundry sand in 2003 could count as "wrongful entry" or an "invasion of the right of private occupancy."
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