In response to a certified question by the U.S. Court of Appeals for the First Circuit, the Massachusetts Supreme Judicial Court held that there is no common-law duty for insurers to cover costs incurred by a policyholder to prevent an imminent covered loss.
On Dec. 20, 2018, a wastewater treatment system at a manufacturing facility malfunctioned, causing losses to Ken’s Foods at its McDonough, Georgia, location. The malfunction caused the facility’s storm water pond to overflow, allowing wastewater to enter a Georgia tributary. Ken’s incurred around $1 million in cleanup costs to address the wastewater pollution issue, according to Massachusetts high court’s Jan. 6 opinion.
