Fire Fighting Expenses as Property Damage

March 21, 2012

Our insured accidentally started a forest fire that caused damage to a third party's forest/prairie. It was government land, and the government did not make a claim for any property damage. However, the question is: are we obligated to pay the fire fighting expenses on behalf of our insured because they were expenses as a result of property damage? Or, conversely, would this be considered a purely economic loss as there is no property damage? Should the CGL form respond to paying only expenses to put out a forest fire? Thanks.

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