AIG Unit Sued Over Grout Home Damage Litigation Costs (1)

An American International Group Inc. unit was sued by an adhesives manufacturing company seeking coverage for a proposed settlement and defense costs in litigation alleging its grout product damaged homes.

National Union Fire Insurance Company of Pittsburgh, Pa., has refused to agree to cover H.B. Fuller Co. for the underlying proposed class action over its “Power Grout” product, H.B. Fuller said in an Oct. 31 complaint in the US District Court for the District of Minnesota.

The underlying suit, also filed in the District of Minnesota, alleges H.B. Fuller was negligent because its grout product didn’t harden sufficiently at ...