Insurance — asbestos exclusions

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Wisconsin Court of Appeals

Civil

Insurance — asbestos exclusions

An asbestos exclusion unambiguously bars coverage for any damages by asbestos.

“Phillips’ attempt to create an ambiguity is unavailing. First, we observe that the exclusion here is very broad. The opening sentence advises the insured that ‘any loss arising out of, resulting from, caused by, or contributed to, in whole or in part by asbestos, exposure to asbestos or the use of asbestos’ is excluded. (Emphasis added; capitalization omitted.) Given this language, the exclusion would include property damage caused by the accidental dispersal or the mere presence of asbestos.”

“Further, a reasonable person reading the exclusion would not believe that the property damage had to arise out of the ‘exposure to’ or ‘the use of asbestos’ and not to ‘accidental dispersal or mere presence.’ This is so because of the comprehensive language used in the exclusion. Also, given the wording in the exclusion, a reasonable insured would not think that the exclusion only covers asbestos in its friable state. Indeed, the reasonable insured would, in all likelihood, not know what ‘friable asbestos’ is. We agree with American Family that ‘the policy language is clear that if any part of any loss is caused in any way by asbestos, the policy provides no coverage.’”

Affirmed.

Recommended for publication in the official reports.

2011AP2608 Phillips v. Parmelee

Dist. I, Milwaukee County, Witkowiak, J., Curley, J.

Attorneys: For Appellant: Strohbehn, Christopher L., Milwaukee; Luczak, Jason D., Milwaukee; For Respondent: Yankala, Wayne M., Milwaukee; Bennett, Brooke, Milwaukee