Asbestos Exclusions Bar Coverage for Texas Oil Refinery Fire, Calif. Appeals Court Affirms

SAN FRANCISCO — Insurers have no duty to pay for the settlement of claims arising from a 2017 explosion and fire that occurred during asbestos abatement at a Texas oil refinery because the policies clearly exclude coverage for asbestos-removal activities, a California appellate court has affirmed.

In a Dec. 10 opinion, the California Court of Appeal, 1st District, panel found the asbestos abatement was the main cause of the fire; therefore, the exclusions apply.

Motiva Enterprises LLC hired Excel Modular Scaffold and Leasing Corp. to abate asbestos at Motiva’s Port Arthur refinery. Pursuant to the contractor agreement, Excel obtained insurance …