U.S. Underwriters Fights Coverage for HVAC Policyholder

NEW YORK - U.S. Underwriters filed a declaratory judgment action on May 31, asserting that an explicit mold exclusion in a policy issued to a heating and air conditioning company and its insured's failure to provide timely notice of potential claims preclude coverage in an underlying property damage suit. U.S. Underwriters Insurance Co. v. Piccolo, et al., No. 05-CV-5123 (S.D. N.Y.).

At issue in the coverage action is a defense and indemnification for Arnica Heating and Air Conditioning Inc. in an underlying mold lawsuit brought by Veronica Lee Barnes against Arnica and her upstairs neighbor, John Piccolo. Barnes contends that …