LX Hausys Beats Sompo Unit on Coverage for Stoneworker Claims

A silica exclusion in liability insurance policies issued to stone product manufacturer LX Hausys America Inc. doesn’t bar coverage for stoneworker suits alleging they suffered from silicosis and other bodily injuries as a result of handling the company’s products, a federal judge ruled.

The underlying suits contain allegations that fall outside the silica exclusion—such as injuries caused by volatile organic compounds or exposure to products that didn’t contain silica—and thus are potentially covered, Judge John F. Walter of the US District Court for the Central District of California said in a Monday order, handing a setback to a Sompo Holdings ...