Insurer Denies Coverage for Silica Lawsuit Against Stone Manufacturer

Most insurance companies use specific exclusions in their policies stating they will not cover lawsuits stemming from silica exposure injuries.

Artificial stone manufacturers and quartz countertop installation companies facing silicosis lawsuits may be forced to pay settlements and legal costs out of their own pockets, as many insurance policies contain exclusions that allow insurers to deny coverage for silica dust-related injuries.

One of those coverage disputes now involves Architecture Surfaces Group, which does business as ASG Holding LLC. The company faces more than 100 lawsuits filed by stonecutters, fabricators and installers who allege they developed serious lung injuries from exposure to silica dust while working with artificial stone products, including countertops.

However, ASG’s insurer, Liberty Insurance Company, maintains that it is not responsible for covering those claims.

On October 5, Liberty filed a complaint (PDF) in the U.S. District Court for the Western District of Texas, seeking a ruling that it does not have to pay ASG’s legal defense costs or any resulting settlements or judgments.

The dispute centers on a provision known as a Silica Exclusion, which is included in many commercial insurance policies and can bar coverage for injuries arising from silica dust exposure.

Liberty argues that the lawsuits against ASG fall directly within that exclusion because the workers’ injuries allegedly resulted from inhaling silica dust. Despite the policy language, ASG has sought insurance coverage for the claims, prompting Liberty to ask the court to determine its obligations.

Silica Dust Exposure and Silicosis

Silica exposure is a major risk among workers who cut, grind, polish and install artificial stone countertops, due to particles released by the stone into the air. With repeated exposure and inhalation, the workers face the risk of life-threating injuries, including a lung condition known as silicosis, which can lead to death.

Silicosis is a progressive lung disease caused by inhaling silica dust, triggering inflammation and permanent scarring in the lungs. As the disease progresses, breathing becomes more difficult, with severe cases resulting in respiratory failure, the need for a lung transplant or death. The damage from silicosis is irreversible.

In light of these concerns, many stoneworkers are pursuing silicosis lawsuits against the artificial stone industry, centered in California. Each alleges that their employers failed to provide proper warnings, silica dust prevention or effective protective equipment for workers.

Silica Dust Insurance Exclusions

Almost all insurance companies include what is known as a silica exclusion in all Commercial General Liability (CGL) policies when covering businesses in the construction, manufacturing and stone fabrication industries. First introduced by the Insurance Services Office (ISO) in 2005, the policies are specifically designed to exclude coverage of silicosis injuries.

Companies wishing to bypass the exclusion must sign up for either a specialized Contractors Pollution Liability (CPL) policy or an Environmental Impairment Liability (EIL) policy. Liberty claims AGL did not choose such a policy, but is now asking for silica lawsuit coverage.

“The Silica Lawsuits fall squarely within the language of the Silica Exclusions, as each of the Silica Lawsuits alleges injuries caused by exposure to silica, either alone or in combination with other substances.”

– LM Insurance Corporation and Liberty Insurance Corporation v. ASG Holding LLC

The complaint states that ASG began seeking defense and indemnity for 49 silica lawsuits between December 2022 and November 2024. Liberty provided defense for the company in connection with 26 of those lawsuits but reserved the right to deny coverage based on the Silica Exclusion clause.

Liberty indicates it sent a letter to ASG in November 2024, denying coverage for the silica lawsuits after determining that the injuries in the workers’ lawsuits were caused by silica exposure. However, ASG has continued to file claims with the insurer, seeking compensation.

The lawsuit seeks two declaratory judgments: one requesting the court declare Liberty has no duty to defend ASG from silica lawsuits, and another seeking no duty to indemnify ASG.

Silica Lawsuits

The insurance company’s rejection of coverage comes as silica lawsuits continue to be filed in federal and state courts nationwide by workers who developed silicosis while working as installers, fabricators and stone cutters in the artificial stone industry. Those workers may be eligible to pursue compensation if they were diagnosed with:

• Silicosis
• Chronic obstructive pulmonary disease (COPD)
• Kidney disease
• Lung cancer
• Lung infections, including tuberculosis

Silicosis lawyers are evaluating potential claims for quartz countertop workers throughout the United States who developed silicosis following workplace exposure to silica dust. Free consultations are available to help determine whether affected workers may qualify to pursue financial compensation.

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