A New Jersey federal court found that a water treatment product manufacturer is eligible for coverage for pollution claims from state agencies that culminated in over $2.9 million in settlements, rejecting an AIG unit's claim that the policies barred coverage.

In a decision issued Tuesday, U.S. District Judge Karen M. Williams granted part of ResinTech Inc.'s motion for summary judgment, finding that AIG Specialty Insurance Co.'s primary policy provided coverage for pollution liability for third-party claims of injury or property damage beyond of the company's property.

AIG had argued that the company was not owed coverage for claims happening off-site when no schedule of properties was attached to the policy to list what was "insured property" for purposes of the coverage, known as Coverage D-1.

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