Insurer Says Drywall Coverage Ruling Needed to Head Off Possible Bad Faith Claim

PENSACOLA, Fla. - Westfield Insurance Co. has filed a declaratory judgment action in Florida, seeking clarification of its coverage obligations for claims asserted against an insured that supplied Chinese drywall used to repair a hurricane-damaged home. Westfield Insurance Co. v. Rightway Drywall Inc., et al., No. 11-548 (N.D. Fla.).

In the complaint, filed Nov. 16 in U.S. District Court for the Northern District of Florida, Westfield maintains that a total pollution exclusion in a commercial general liability and umbrella policy bars coverage for the class action brought against Rightway Drywall.

According to the lawsuit, Rightway supplied allegedly defective drywall that …