The complaint contends that the insurer forced Fresca to demonstrate that it suffered a direct physical loss or damage, and Fresca says in the suit that it did so.
In its complaint, the company said “The introduction of nonpotable water into the city of Louisville’s water supply system, of which the Fresca facilities are a part … constituted either (if not both) direct physical loss or damage to the Fresca facilities.”
The two Fresca Foods production facilities in Louisville, Colorado, were ordered to evacuate on Dec. 30, 2021, after the Marshall Fire ignited and quickly spread into the surrounding cities.
In an effort to help the neighboring city of Superior, Colorado, and to assist in maintaining adequate water line pressure and supplies for firefighters, Louisville officials began to use a second water treatment plant and ran non-potable water through it, which resulted in the city issuing a “Boil Water Order” that was in effect until Jan. 6, 2022, according to Fresca’s complaint.
Fresca Foods said its local facilities had to remain closed until the boil order was lifted, and it could drain all its water systems and conduct tests to ensure that the water was safe in order to resume its food production. Fresca claims that it notified its insurance broker on Dec. 31, 2021, that it would be submitting claims for losses suffered from the fire.
