Demand Letter Issued To Insured Triggered Insurer’s Duty To Defend, Panel Says

Mealey's (November 24, 2020, 10:24 AM EST) -- HARRISBURG, Pa. — An insurer’s duty to defend its insured against environmental contamination claims asserted by the Pennsylvania Department of Environmental Protection (DEP) was triggered when the DEP notified the insured that it was identified as a potentially responsible party for the contamination at the site because the demand letter clearly commenced a legal process against the insured, a panel of the Pennsylvania Commonwealth Court said Nov. 19 in denying the insurer’s motion for summary relief (Pennsylvania Manufacturers’ Association Insurance Co., v. Johnson Matthey Inc., et al, No. 330 M.D. 2015, Pa. Cwlth., 2020 Pa. Commw. LEXIS 734)....

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