The Pantry Files Suit Against Insurance Cos.
SANFORD, N.C. -- The Pantry filed a complaint in federal court against a pair of insurance companies, alleging that both are denying responsibilities to pay for costs the convenience chain operator incurred after underground storage tank leaks, the Triangle Business Journal reported.
The two companies named in the suit -- American Safety Indemnity Co. of Georgia and Gulf Underwriters Insurance Co. of Connecticut -- are denying coverage for claims that are covered wholly or partially by their policies, the report stated.
Gulf issued The Pantry a policy for coverage on tank releases occurring from Jan. 1, 1985, through Dec. 14, 2004, the report stated, citing the lawsuit. The policy was worth up to $10 million in payouts to The Pantry, according to the suit.
Meanwhile, American Safety provided the company with a policy that covered leaks from Dec. 14, 2004, to Dec. 14, 2006, which was worth an aggregate amount of $2 million in payouts, the report stated.
However, The Pantry discovered the tank releases after Dec. 14, 2004, but it isn't clear if the leaks occurred after that date, the report stated. As a result, the insurance companies have not agreed on which company owes money for the leaks, despite information provided on the incidents by The Pantry, according to the newspaper report.
"For months, the parties have investigated and negotiated regarding these sites, and The Pantry has provided both carriers with all information requested," Triangle Business Journal quoted the suit as saying. "Nonetheless, both carriers continue to deny coverage for claims that the investigation has shown to be covered in whole or in part by their respective policies, with each carrier pointing at the other as the responsible party."
Representatives for The Pantry weren't immediately available for comment, the report stated.
The two companies named in the suit -- American Safety Indemnity Co. of Georgia and Gulf Underwriters Insurance Co. of Connecticut -- are denying coverage for claims that are covered wholly or partially by their policies, the report stated.
Gulf issued The Pantry a policy for coverage on tank releases occurring from Jan. 1, 1985, through Dec. 14, 2004, the report stated, citing the lawsuit. The policy was worth up to $10 million in payouts to The Pantry, according to the suit.
Meanwhile, American Safety provided the company with a policy that covered leaks from Dec. 14, 2004, to Dec. 14, 2006, which was worth an aggregate amount of $2 million in payouts, the report stated.
However, The Pantry discovered the tank releases after Dec. 14, 2004, but it isn't clear if the leaks occurred after that date, the report stated. As a result, the insurance companies have not agreed on which company owes money for the leaks, despite information provided on the incidents by The Pantry, according to the newspaper report.
"For months, the parties have investigated and negotiated regarding these sites, and The Pantry has provided both carriers with all information requested," Triangle Business Journal quoted the suit as saying. "Nonetheless, both carriers continue to deny coverage for claims that the investigation has shown to be covered in whole or in part by their respective policies, with each carrier pointing at the other as the responsible party."
Representatives for The Pantry weren't immediately available for comment, the report stated.