Insurance co does not have to defend Murphy Oil in refinery fire claims

Liberty Mutual Fire Insurance does not have to defend Murphy Oil against an estimated $25 million in claims for a major fire in 2012 at a South Louisiana refinery it used to own, a federal judge in Arkansas ruled.

In a decision on Tuesday, U.S. District Judge Timothy Brooks in El Dorado, Arkansas said Liberty is not responsible because its general liability policy does not cover contract claims, and the claims at issue involve a purchase agreement governing Murphy’s 2011 sale of the refinery to Valero Energy.

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