Plastic2Oil Inc (PTOI)

[Johnik]

MLM, I have not followed this debate, but there are far too many uncertainties to give a definitive answer to this question. First, insurance is largely a matter of contract, and those contracts can be very lengthy. One would need to take a careful look at the policy before one could determine what that policy covers. Any doubt is ordinarily resolved in favor of the insured, but without seeing the language of the policy, we can only guess. And no, I have not read or seen JBI's insurance policies (yes, there is likely more than one in place).

Second, coverage involves two separate duties on the part of the insurer: (1) the duty to defend, and (2) the duty to indemnify. The former duty is far broader than the latter. So, assuming a lawsuit can reasonably be construed to afford coverage, an insurer may well have to defend the suit, even though the question of indemnity remains open. For this reason, insurers will sometimes defend under a reservation of rights, leaving open the issue of indemnity depending on what transpires during the proceedings.

Related to the first two issues, insurance policies often contain exemptions for certain types of acts. The more severe the misconduct, the greater the likelihood it will be exempted from coverage. Often, the details of the misconduct (if any) do not come to light until the evidence is revealed (thus bringing into play the second issue above). Neither you nor I can surmise at the pleading stage of a lawsuit what will ultimately be proven following discovery, and trial, of the matter.

And there are so many other questions to be asked. What are the limits of liability? Who is covered under the policy? What is the policy term? What actions, if any, ultimately trigger liability, and when did those actions occur? I am only scratching the surface of the various considerations. Your question is about as far from black and white as they come.

How is that for an answer without an answer? : )