Exclusions Bar Coverage for Moldy Cotton Bales, Court Says

ST. LOUIS - A federal circuit court has affirmed a declaratory judgment in favor of the insurer for a Missouri cotton gin, ruling that the carrier has no duty to defend or indemnify the insured for claims of allegedly moldy cotton. Michigan Millers Mutual Insurance Co. v. DG&G Company Inc., No. 08-2699 (8th Cir.).

The 8th Circuit said in its July 1 ruling that the underlying property damage claims against DG&G Company Inc. fell within the "care and custody" exclusion in the policies issued by Michigan Millers Mutual Insurance Co.

Michigan Millers filed this declaratory judgment action after DG&G sought …