Question
Alvin owns a small construction company. One of his heavy equipment operators while digging a hole hit a buries gas line which caused an explosion
Alvin owns a small construction company. One of his heavy equipment operators while digging a hole hit a buries gas line which caused an explosion severely injuring a nearby pedestrian who was walking by. The pedestrian sues Alvin for negligence. Alvin is glad he has 3rd party liability insurance, and he promptly notifies his insurance company. The Insurance Company reviews Alvins application for insurance and notes that Alvin was asked if his business ever works in or around natural gas pipes or buried electrical lines to which Alvin answered no. The Insurance Co promptly sends Alvin a letter advising him that they are rescinding coverage and enclosed a premium refund check. What does this mean, and can the Insurance company legally do this? Explain
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