You Should Be Covered for Natural Resource Damages

New Jersey businesses should be aware that the state’s Natural Resource Damages initiative could expose them to significant liabilities — some of them decades old and inherited from predecessor companies. At the same time, businesses should know that their liability insurance policies — particularly historic policies, which contain fewer potentially-applicable exclusions — may provide coverage for NRD claims.

Existing case law involving insurance coverage for NRDs suggests that three factors will determine whether insurance coverage for NRDs is available in specific instances.