Oil Co. Seeks Insurance Coverage Of $1M Spill At 9th Circ.

Law360 (September 11, 2020, 8:09 PM EDT) — The Ninth Circuit should force Bitco General Insurance Corp. to cover $1 million in cleanup costs for an oil spill under an umbrella policy that doesn’t exclude pollution, a Montana oil and gas company argued.

In an opening brief Thursday, J. Burns Brown Operating Co. argued a district court wrongly found its umbrella policy with Bitco General excluded coverage for pollution. J. Burns says that an exception in the policy’s pollution exclusion triggers coverage because its underlying policy with Bitco General does cover pollution and has paid out $100,000 for the oil spill in question.

At a minimum, the umbrella policy…

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