What Constitutes “Property Damage” Under an Insurance Policy?
It is well settled in New Jersey that environmental response costs and remediation expenses constitute sums the insured may have to pay as damages because of “property damage” within the meaning of comprehensive general liability policies of insurance. Morton Int’l, Inc. v. General Acc. Ins. Co. of Am., 134 N.J. 1, 27 (1993); Metex Corp. v. Federal Ins. Co., 290 N.J.Super. 95 (App. Div. 1996).
Which Insurance Policy Provides Coverage for Your Property Damage Claims?
At Verp & Leddy we have decades of experience litigating on behalf of insurance companies before switching to represent injured individuals. That’s why we know exactly what insurance companies will try to do to deny property damage claims that legally should be paid. We have extensive experience interpreting and analyzing complicated insurance policies and endorsements. We also know insurance coverage law in New Jersey, so we know how to best represent you in suit against an insurance company.
Often one of the most confusing things for policyholders is understanding which insurance policy provides coverage for property damage claims. In general, New Jersey Courts apply the injury-in-fact trigger to ascertain the date of loss for property damage claims. The time of the occurrence of an accident within the meaning of an indemnity policy is not the time the wrongful act was committed, but the time when the complaining party was actually damaged. Hartford Acc. & Indem. Co. v. Aetna Life & Cas. Ins. Co., 98 N.J. 18, 27 (1984). In environmental cases, a continuous trigger is applied. Quincy Ins. Co. v. Borough of Bellmawr, 172 N.J. 409 (2002).
Under New Jersey’s trigger, continuous and progressive injuries trigger multiple policy periods. Thus, courts have triggered continuous coverage from exposure, or the date of the initial discharge, through the date the loss becomes known or manifest. Carter Wallace Inc. v. Admiral Ins. Co., 154 N.J. 312 (1998) (environmental property damage); Owens-Illinois, Inc. v. United Ins. Co., 138 N.J. 437 (1994) (asbestos). In such cases it is not just a single policy that you are entitled to coverage from – it is each policy issued during the entire period of the exposure!
