| Abstract: | California case law demonstrates the value of umbrella insurance coverage when policyholders are confronted with environmental liabilities imposed administratively by environmental authorities. California law holds that certain general-liability umbrella coverage language is broad enough to cover environmental claims arising solely or partly out of administrative requirements which claims generally are not otherwise covered by primary insurance. See, e.g., Powerine Oil Co., Inc. v. Superior Ct., 37 Cal. 4th 377, 398–99 (2005); Lockheed v. Continental Inc. Co., 134 Cal. App. 4th 187 (2005); Ludgate Ins. Co. v. Lockheed Martin Corp., 82 Cal.App. 4th 592, 605–6 (2000). Regrettably, however, excess/umbrella insurance companies may seek to conflate umbrella first-dollar and excess coverage obligations when faced with claims in seeking to delay or avoid payment. |
