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Insurers owe no coverage in $11 million quarry shutdown - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Insurers owe no coverage in $11 million quarry shutdown by Richard Sine P/C Insurers Sep 29, 2026 A unit of Fairfax Financial Holdings and another insurer have no duty to defend or indemnify a Connecticut town that agreed to pay $11 million after it was found to have unfairly shut down a quarry, a federal judge ruled. The decision, in Town of East Haven v. Allied World Insurance Company , was issued Friday in the U.S. District Court for the District of Connecticut in Hartford. Allied World Insurance is a subsidiary of Fairfax, based in Bermuda. The other defendant, Starr Indemnity and Liability, is based in New York. East Haven, Connecticut, and two of its former officials, ex-Mayor Joseph Maturo and former zoning officer Christopher Soto, shut down the Farm River Rock Quarry through a series of cease-and-desist orders, the last issued in 2017, according to the ruling. In 2019, a Superior Court judge had found that the quarry had been in use for more than 75 years and was a “legal pre-existing nonconforming use,” according to a report in the New Haven Register. In 2023, the town and officials were found liable for violating the “constitutionally protected property right” of the quarry’s owners and ordered to pay more than $10.6 million in damages and interest, according to the ruling. They later settled the case for $11 million while an appeal was pending, the ruling said. The town had two insurance policies covering different periods: one with Starr running through July 2016, and one with Allied World beginning that same month. The judge found Starr owed nothing because the town’s liability stemmed from its conduct in 2017, after Starr’s coverage had ended. Allied World’s policy did cover that period, but the judge found a policy exclusion for claims involving a “lack of due process” barred coverage anyway. She rejected the town’s argument that the exclusion applied only to eminent domain claims. She also found neither insurer breached any duty to defend, since the town’s out-of-pocket costs never exceeded the $1 million self-insured retention in either policy until it paid the final settlement. That settlement included a withdrawal of the town’s appeal, leaving no case to defend, the judge ruled. 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