California Supreme Court Decision Removes Significant Obstacle To Coverage For Long-Tail Claims

California Supreme Court Decision Removes Significant Obstacle To Coverage For Long-Tail Claims

April 7, 2020, Covington Alert

On April 6, 2020, the California Supreme Court handed down a major victory for corporate policyholders facing liability for “long-tail” claims involving continuous or progressive injuries that span multiple insurance policy years, such as environmental, asbestos, construction defect, product liability, toxic tort, and sexual abuse cases. Montrose Chemical Corp. v. Superior Court, Case No. S244737 (“Montrose IX”).We explain here what the court decided, and what the decision means to policyholders.