Liberty Mutual says 1996 buyback ended its California toxic-site coverage

Liberty stacks up three more defenses in the filing. First, pollution exclusions: it points to clauses across the policies that bar coverage for pollution spread “intentionally by or for the insured” or through “a gradual emission, discharge, release or escape,” and to what it calls an absolute pollution exclusion on one umbrella policy. Second, the “suit” question: Liberty says the state matter is an administrative demand, not a lawsuit in any court, so its promise to defend a “suit” has not switched on. Third, whether Vishay is covered at all: Liberty says Vishay has not handed over the merger and assignment paperwork needed to prove it ever inherited the coverage, stating that on the information provided, “Vishay has not received any assignment of the Liberty policies and is accordingly not an insured under those policies.”