January 6th, 2008

A major insurance company agreed to pay more than $365 million this week in cases involving asbestos victims. Re-insurers will include an additional $84 million in the settlement, which still needs bankruptcy court approval.

A major insurance company revealed this week that they have offered to pay a Pennsylvania contracting company $365 million, with an additional $84 million being contributed from its re-insurers. The plan will need to be approved by a federal bankruptcy court, since the insurer will be filing the settlement as part of a bankruptcy strategy. Initially, the contractor sought more than $1 billion from the insurance company. The contractor utilizes insulation that contains asbestos, and has been the insurance company’s largest company claiming asbestos exposure.

Asbestos exposure can lead to many forms of illnesses including mesothelioma, emphysema and asbestosis. Asbestos is only dangerous when it is disturbed or improperly removed. When asbestos breaks apart, it becomes airborne and fibers of the material can be inhaled. When the fibers become trapped in the lungs, it keeps the tissue from absorbing oxygen, leading to a form of deadly cancer called mesothelioma. Mesothelioma victims are often terminal when the disease is detected, making insurance cases a race against the clock.