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Hartford insurance units, led by First State Insurance Co., told an Ohio federal court Wednesday that they owe no coverage to Procter & Gamble Co. (P&G) in connection with three lawsuits accusing the company of contaminating groundwater in New York, as well as a warehouse fire in Michigan that prompted a U.S. Environmental Protection Agency (EPA) investigation.

The dispute centers on a series of excess and umbrella insurance policies, covering periods from 1977 to 1986, which include pollution exclusions barring coverage for property damage or personal injury caused by the release of toxic chemicals or other pollutants into water sources. The Hartford units argue that these exclusions apply to the claims, which involve the release of 1,4-dioxane, a toxic chemical alleged to have contaminated groundwater in New York. The lawsuits also claim that P&G knew or should have known about the potential risks associated with releasing the substance into the environment.

Additionally, the Hartford units raised the issue of a September 2023 warehouse fire in Cheboygan, Michigan, which triggered an EPA investigation. While the EPA concluded in June 2024 that the hazardous substances released from the fire were removed, the Hartford units argue that the EPA's claim does not involve property damage occurring within their policy coverage periods.

The insurance units further contend that P&G has not shown that the release of 1,4-dioxane was sudden or accidental, as required for coverage under the policies' "sudden and accidental" exceptions. Because the underlying lawsuits accuse P&G of knowing about the chemical’s environmental impact, the Hartford units argue that no covered occurrence is alleged.

The case, First State Insurance Co. et al. v. Procter & Gamble Co., is ongoing in the U.S. District Court for the Southern District of Ohio, with the Hartford units represented by Lewis Brisbois Bisgaard & Smith LLP and Karbal Cohen Economou Silk & Dunne LLC. Counsel for P&G was not immediately available for comment.