Camalloy Wire, Inc. v. National Union Fire Insurance

# Camalloy Wire, Inc. v. National Union Fire Insurance **What Happened** Camalloy Wire, Inc. had an insurance policy with National Union Fire Insurance that included a $50,000 self-insured retention—meaning the company had to pay the first $50,000 of any covered costs themselves. When environmental cleanup costs arose, totaling $33,800, Camalloy filed a claim expecting the insurance company to cover some portion. **The Court's Decision** The appellate court ruled against Camalloy, upholding a lower court's decision favoring the insurance company. The court determined that because the cleanup costs ($33,800) fell below the required $50,000 threshold that Camalloy had to pay first, the insurance company owed nothing. Camalloy had to cover all costs themselves. **Why This Matters for Workers** This case highlights the importance of understanding insurance policy details before signing. Employees and companies should carefully review deductibles and retentions in their coverage. This ruling reinforces that insurance companies will strictly enforce the terms agreed upon, so workers and business owners need to know exactly what they're responsible for paying out-of-pocket.