Commercial Liability Coverage Limited to Loss Because of Property Damage

Berry Plastics Corporation produced an intermediate bulk container for its customer Packgen who then sold the container to one of its customers CRI Catalyst Company. The container produced promising results at first, leading Packgen to anticipate an increase in sales to multiple customers. Then the packaging failed leading CRI to cancel all orders and destroy the containers on hand without paying for them. Packgen sued Berry for $7.2 million and won in a jury trial. Berry turned to its commercial liability insurance carrier for relief. The insurance company, Illinois National, denied coverage which was upheld by the Seventh Circuit Court of Appeals. In a 36-page opinion, Judge Rovner emphasized the importance of a fact-based analysis when identifying the triggers for an indemnification claim. Find the details here.