May 22, 2008
Law, Letters

Liability — a sleeper issue?


A landowner writes:

I called my insurance agent and asked if my farm liability policy would defend me against a nuisance lawsuit by a neighbor related to wind turbines. The answer is no. Two other insurance companies returned the same answer. The wind contracts have carefully written hold-harmless clauses that do not commit the turbine owner to pay landowner legal costs or judgements for this. The landowner is ultimately liable if the turbine owner defaults. I raised this question with the leasing agent too. None of the insurance agents or the leasing agent had heard this question raised before. The leasing agent is checking with his legal department – no response after a week. I guess he doesn’t want my business if he has to address this question.

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