QUESTION:
We have a client who has caused damage to a client's ceiling and is looking to claim for this. Unfortunately the affected property has asbestos in the ceiling. The insurer is suggesting that there may not be cover due to the following exclusion:
“Section 3: Exclusions: We will not insure you for any claim under this policy for, or directly or indirectly arising from, or out of, or in connection with:
3.4 Asbestos: Any actual or alleged liability whatsoever for any claim or claims in respect of loss or losses directly or indirectly arising out of, resulting from or in consequence of, or aggravated by asbestos, in whatever form or quantity.”
My reading of this is that if the damage was consequential to the original loss, it wouldn't be covered. For example damaged cabinets that are attached to the ceiling, and need to be removed thus causing damage to the asbestos-lined ceiling. But in this instance, the damage has been directly done to the ceiling which just happens to have asbestos in it. Regardless, there is a claimable event there it just happens due to the presence of asbestos, and the costs are higher to reinstate.
EXPERT ANSWER: Cecily Brick, Fee Longstone
The exclusion applies to a claim in respect of a loss aggravated by asbestos. As the cost of repairing the damage to the ceiling will be increased (ie aggravated) by the presence of asbestos, I think the exclusion would apply in this case.
