Ohio Supreme Court Rules Preventive Lead Abatement Payments Not Covered as ‘Damages’ Under Liability Insurance

In Sherwin-Williams Co. v. Certain Underwriters at Lloyd’s London, Slip Opinion No. 2024-Ohio5773, the Supreme Court of Ohio held that payments to prevent future harm, rather than compensate for past harm, do not qualify as damages covered by liability insurance. Specifically, although the term “damages” was undefined in the insurance contracts at issue, the Supreme Court found that it was obligated “to give [the] plain language its ordinary meaning” which encompasses redress for past harm only.  Because the judgment in the underlying suit “did not compensate the governmental entities for past loss or injury,” but rather “was designed to prospectively prevent further harm related to lead poisoning,” it did not qualify as covered damages under the insurance contracts as it did not redress past harm.

Read the full opinion.