In the asbestos context, a company that uses asbestos-containing products on its premises may contract out for the installation, distribution, or removal of these products. For this work, the premises owner may name the contractor as an additional insured under its comprehensive general liability insurance. Thus, if employees of the contractor are exposed to asbestos, the contractor may seek compensation from the insurance company of the premises owner as an insured. A second way to obtain the benefits of OPI is through a direct action. In a direct action, an aggrieved party directly sues the insurance company of another party.
Direct actions are available only where provided for by contract or statute.
However, in direct action states, this is a highly effective means of obtaining insurance coverage. Companies that want to stay out of bankruptcy when faced with mounting asbestos liabilities immediately should look at premises coverage, OPI, and any other source of recovery now instead of when it is too late. John Ellison is a managing partner and a senior shareholder and Nick Insua is a junior shareholder in the Philadelphia, PA office. Robert Chung is a junior shareholder in the New York office of Anderson Kill and a member of the Financial Services Insurance Coverage Group. Anderson Kill regularly represent policyholders in insurance coverage actions.