Insurers Sue Lumber Liquidators in Virginia over Coverage of Flooring Class Actions

NEWPORT NEWS, Va. — Several insurers have filed a lawsuit in Virginia, seeking a declaration that they owe neither a duty to defend nor indemnify Lumber Liquidators against numerous claims that the company’s hardwood flooring products contain and “off-gas” excess levels of formaldehyde.

The insurers, who issued a total of 16 commercial general liability and umbrella policies to Lumber Liquidators over a combined 15-year period, argue in the lawsuit filed in U.S. District Court for the Eastern District of Virginia that terms of the policies are inapplicable to the underlying claims and that coverage is barred by certain exclusions in …