8/28/2009
Court Rules Insurer Must Defend Odor Remediation Suit

The First Circuit Court of Appeals recently required an insurer to defend a claim arising out of an offensive carpet odor that permeated the building and made tenants sick. Essex Insurance claimed that it did not have to defend because the CGL policy covered only physical injury to property. It also argued that, even if an odor could somehow be considered physical injury to property, two business-risk exclusions applied and relieved it from any duty to defend.