Alton Steel sues over insurance claim denial

Madison County Courthouse

The Telegraph

EDWARDSVILLE – Alton Steel has filed a suit in Madison County Circuit Court asking for $5.3 million from an insurance company it claims failed to pay a legitimate claim.

The company claims Sompo Insurance Co. of New York failed to pay “breakout” insurance, that, is, insurance for loss of business as a result of an adverse event, as well as the cost of repair to a furnace.

Alton Steel claims it was insured for, among other things, compensation for lost business after damage to its arc furnace, furnace components, hydraulic equipment and other equipment.

The steel company is asking for damages of $800,000 for repair of the damage. The plaintiffs are asking for damages for $4.5 million in loss of business while the furnace was being repaired.

Alton Steel is also asking for interest on the amount owed, the cost of litigation and other relief.

The steel company is represented by Masini, Vickers & Hadsell of Chicago. The insurance company did not respond to a request for comment immediately.

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