Liberty [Mutual Group] argued the claims should be considered "one occurrence," which would limit the damages, because they were caused by a single mistake: the manufacture and sale of asbestos-tainted products. Liberty also claimed it should not be responsible for costs related to injuries that happened while it was not Plenco's insurer.
The Supreme Court rejected those arguments Thursday. In a majority decision written by Justice Annette Ziegler, the court said each person injured must be treated as a separate occurrence and Liberty has to pay the full cost of defending and compensating victims up to its policy limits.
(via The Wheeler Report)
See Decision in 'Plastics Engineering Co. v. Liberty Mutual Ins. Co.' 2009 WI 13.