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St. Louis energy firm seeks at least $106M from insurers over mine fires

Foresight said it spent "tens of millions of dollars fighting the fires and mitigating its losses," and eventually reopened two of the mines.
Credit: Parilov - stock.adobe.com

ST. LOUIS — A St. Louis-based coal producer is seeking at least $106 million from its insurers over mine fires last year.

Foresight Energy, based at One Metropolitan Square, said in litigation filed in federal court last month that in April and August 2021, fires occurred in two of its Illinois mining complexes, called Hillsboro and Sugar Camp, prompting the federal Mine Safety and Health Administration to order the immediate closure of three Foresight mines.

Foresight said it spent "tens of millions of dollars fighting the fires and mitigating its losses," and eventually reopened two of the mines. The third, called MC-1, still has its operations suspended "by virtue of an order from MSHA," Foresight said in its lawsuit.

A series of insurers, though, have paid less than $9 million of Foresight's more than $100 million in losses from the Sugar Camp fire and just $234,989 of $15 million in losses from the Hillsboro fire, the company alleged.

The named insurance defendants include Ace American Insurance Co., now Chubb; Allied World Assurance Co. AG; Arch Reinsurance Ltd.; Argo Re Ltd.; Houston Specialty Insurance Co.; and Oil Casualty Insurance Ltd.

Spokespeople for Chubb, Arch and Argo declined to comment. The other insurers didn't immediately respond to requests for comment or couldn't be reached.

Foresight added that the insurers' refusal to honor the obligations "was not a mere mistake or good faith error of judgment," citing their refusal to follow the advice of their own adjuster to pay the claims. 

Click here for the full story from the St. Louis Business Journal.

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