Suburb's Citizens Out of Luck Against Contractor's Insurer for Contaminated Water

Under established Illinois law, an insurer must defend a legal action filed against its insured unless it is clear from the face of the underlying complaint that the allegations fail to state facts which bring the case within, or potentially within, the policy’s coverage. The issue of whether the allegations are “potentially within” the policy’s coverage is often disputed itself. The Illinois Appellate Court was asked to address this issue and recently ruled in favor of the insurer in the case of General Casualty Company of Wisconsin, et al. v. Burke Engineering Corporation et al. 2020 Ill. App. (1st) 191648, September 14, 2020.

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