U.S. Metals, Incorporated v. Liberty Mutual Group, Incorporated, Doing Business as Liberty Insurance Corporation

The insured under a standard-form commercial general liability insurance policy supplied flanges for use in constructing refinery processing units. The flanges leaked and had to be replaced to avoid the risk of fire or explosion. The flanges were welded to the pipes they joined and therefore had to be cut out while the refineries were shut down. The insured claims that its liability for the refinery owner’s replacement costs and downtime damages are covered by its CGL policy.

The policy covers “physical injury” to property and the lost use of property that could not be restored by replacing…