The Pantry is taking a pair of insurance companies to federal court, claiming the companies have ignored their responsibilities to pay out on costs The Pantry incurred after underground storage tank leaks.
The Sanford-based chain said that American Safety Indemnity Co. of Georgia (ASI) and Gulf Underwriters Insurance Co. of Connecticut have denied coverage for claims that are covered in whole or in part by their policies.
The confusion over who should pay out what money is a matter of timing, according to the Triangle Business Journal. Gulf issued The Pantry a $10 million policy that provided coverage for tank releases occurring from Jan. 1, 1985, through Dec. 14, 2004, ASI gave The Pantry a policy that covered leaks from Dec. 14, 2004, to Dec. 14, 2006, worth an aggregate amount of $2 million in payouts.
But while The Pantry discovered the tank releases after Dec. 14, 2004, it isn’t clear that the leaks actually occurred after that date. The insurance companies can’t agree on who owes money for which leak despite information provided by The Pantry, according to the newspaper.
The Pantry has yet to comment on the situation.
