ELR Citation: 42 ELR 20242
No(s). 11-13140 (E.D. Mich. Nov 15, 2012) (Battani, J.)

A district court held that an insurance company need not indemnify its insured for certain repair and replacement costs it incurred cleaning up the release of contaminants from an underground gasoline storage tank. A clear reading of the plain language of the policy indicates the company was not required to pay for services associated with updating and repairing the storage tank systems and gasoline dispenser islands. The insurer was required to remediate the surrounding environmental area, not to update and replace the insured's business equipment. Requiring the insurer to repair and replace the dispenser islands, recalibrate the dispenser islands, reinstall all of the electrical components of the system, and install a new sewer system is unreasonable and excluded by the policy language. Nor does the cost of replacing 5,800 square feet of excavated concrete qualify as cleanup costs under the policy. The policy unambiguously excludes coverage for costs associated with restoring the entire premises back to its original condition.