Pa. Employer Liability Exclusion Case May Impact O&G Cos.

Law360, New York ( February 2, 2015, 4:09 PM EST) -- One of the biggest risks oil and gas companies face is a blowout or some other type of catastrophic event that causes serious injury or death. In the aftermath of such an event, companies often find themselves facing lawsuits by injured workers who are employed by contractors. Such workers are typically barred from suing their own employers by Pennsylvania's workers' compensation statute, which often leads them to file lawsuits against other parties. Many companies assume that they are protected from such liability by insurance provisions in their contract with the injured worker's employer, but insurance companies may deny coverage under these circumstances by relying on a decades-old Pennsylvania Supreme Court decision. More recent Pennsylvania court decisions, however, favor insureds, and the Pennsylvania Supreme Court recently agreed to revisit the issue, so oil and gas companies operating in Pennsylvania should stay tuned....

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