After a news report came out in March saying that Lumber Liquidators’ Chinese-made laminate flooring contained unsafe levels of formaldehyde, the company is being investigated by federal agencies, has been slapped with class-action lawsuits and now faces even more troubles.
Lumber Liquidators has halted sales of its laminate flooring from China, but might not be able to cover the costs of litigation because its insurance carriers are refusing coverage, according to an article by CNBC.
The article says Lumber Liquidators has sued nine insurance carriers for breach of contract. The company is asking the court to order carriers to provide coverage.
Lumber Liquidators notified its insurance carriers of the court cases, yet the company says it was denied coverage despite the fact that “no exceptions, exclusions or limitations in the policies preclude coverage for the underlying lawsuits,” according to CNBC.