AIG Unit Sued Over Coverage for Delaware Plant Mercury Cases

An American International Group Inc. unit was hit with a lawsuit seeking coverage for litigation alleging people were exposed to mercury from a former chlorine manufacturing facility in Delaware run by Occidental Chemical Corp.

Environmental Resource Holdings LLC, the successor to Occidental through a merger, should be covered under liability policies that AIG’s National Union Fire Insurance Co. of Pittsburgh, PA, issued to a contractor that worked at the facility, according to the lawsuit filed Wednesday in the US District Court for the Middle District of Louisiana.

The lawsuit centers on agreements from 1989 and 1991 that required the contractor, ...