Favorable Decision for Corinth Pellets' Fire Damage
On February 24, Business Insurance released an article, "Arch failed to properly notify policyholder of nonrenewal," referring to the Corinth Pellets, LLC v. Arch Specialty Insurance Co. et al. case that favored Corinth Pellets, LLC by the Maine Supreme Judicial Court. The case came from a dispute over the existence of insurance coverage for a pellet mill that suffered a catastrophic fire loss. The insurance company took the position that the fire was not covered because it occurred after the policy expired. Our team took the position that the insurance company was on the hook because it had not properly communicated its decision not to renew the policy as is required by Maine’s surplus lines insurance statute.
Litigation attorney Brett Leland was quoted in the article, “We are very pleased with the decision of the Maine Supreme Judicial Court on this significant issue of first impression. It will provide important guidance not only to insurance practitioners in Maine but across the Country, and will result in more protection for high-risk insureds.”
To read the full article, visit BusinessInsurance.com here.