PBM Nutritionals, LLC v. Lexington Ins. Co.

PBM Nutritionals filed a declaratory judgment action against three insurance companies (collectively the Insurers) seeking insurance coverage for its loss resulting from infiltration of filter elements into the infant formula it manufactured between January 22 and January 30, 2009. The Insurers claimed that the insurance policies' "Pollution Exclusion Endorsements" excluded coverage for PBM's infant formula loss because the formula was "contaminated." The circuit court entered judgment for the Insurers. The Supreme Court affirmed, holding that the circuit court did no err in finding that the Insurers were not liable to provide insurance coverage for PBM's loss of infant formula product.