X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Oh, the ironies of insurance and disposable-diaper material. An FC&S Online subscriber recently contacted us about a claim in which a truckload of the absorbent material used to make disposable diapers was ruined by, of all things, “wetness.” The very thing the material was meant to absorb became its demise in this situation, and the insurance carrier denied the claim.

The reason for the denial? The Motor Truck Cargo Legal Liability coverage form excluded loss arising from  a series of causes—such as spoilage, changes in texture, extremes in temperature, “wetness, dampness, dryness, corrosion or rust”—unless the loss resulted from specific causes. The causes that would trigger coverage for such things as wetness included fire, lightning, wind or hale, etc. Water damage was not listed.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.