The court was not persuaded. The technician had physically handled the pesticide while applying it, which was enough to bring it within the policy’s definition of Terminix’s product. And once the pesticide became airborne and migrated to the other side of a wall, into an area inaccessible to Terminix’s technician, the company could no longer be said to have possessed it. The physical possession exception, designed to carve out situations where the insured still controls its product, simply did not fit the facts.
Appeals court upholds Swiss Re’s obligation to cover Terminix pesticide verdict
By Awais
