Guideposts for Answering Key Insurance Coverage Issues in Benzene Liability Cases

Introduction Recently, a jury awarded a former mechanic multi-millions of dollars in damages due to what it determined was a failure of a petroleum company to warn him of the risk of benzene in its products. This verdict will likely trigger both insurance coverage questions as well as a new wave of benzene suits. In view of these possibilities, Perkins Coie attorney […]

Guideposts for Answering Key Insurance Coverage Issues in Benzene Liability Cases

A recent jury verdict awarding a former mechanic multi-million-dollar damages for benzene exposure has intensified scrutiny on petroleum companies’ duty to warn and is expected to spur a new wave of benzene-related litigation. Beyond liability concerns, the decision raises significant insurance coverage questions for manufacturers and suppliers facing similar claims.
In anticipation of these issues, Perkins Coie attorney Jonathan Hardin points potential defendants to Radiator Specialty Co. v. Arrowood Indemnity Co., the only state supreme court decision to date addressing insurance coverage for benzene claims. That case provides critical guidance on when coverage is triggered, how liability is allocated among insurers, and when excess coverage obligations arise.