Patrons Oxford Mutual Insurance v. Marois

HORNBY, Justice.

In this case we consider whether a special multi-peril policy covers a polluter’s expense in responding to state-ordered clean-up demands. The pollution resulted from leaking underground tanks located on the insured’s property. We conclude that insurance contract language providing coverage for amounts the insured is “legally obligated to pay as damages” does not cover expenses the insured incurs in meeting state clean-up demands. We also hold that the duty to defend the insured against “any suit ... seeking damages” does not include an administrative proceeding that can award…