AIG Unit Hit With Suit Over Gas Station Contamination Litigation

An American International Group Inc. unit was hit with a lawsuit alleging it breached an insurance policy by refusing to defend a company facing environmental contamination litigation tied to a gas station in Washington state.

AIG’s Granite State Insurance Co. also violated the state’s Consumer Protection Act by denying coverage to Gull Industries Inc. in a 2023 lawsuit alleging Gull is liable for fuel leaks from its former gas station in Port Orchard, Wash., occurring during policy periods in the 1980s, according to a complaint filed Oct. 3 in the US District Court for the Western District of Washington.

The ...