Arkansas Plant Suing Insurer Over 2012 Fire

July 30, 2013

A fire that broke out at Welspun Pipes Inc.’s Little Rock, Ark., facility last year could cost the plant $14.5 million.

That’s according to a lawsuit filed by Welspun and Welspun Tubular LLC against its insurance company, Liberty Mutual Fire Insurance Co.

The fire broke out July 14, 2012, in a control panel room. The company said that the plant didn’t reopen until Sept. 25. Arkansas Business reports that Welspun relied on its sister company in India to meet production demands.

The lawsuit says Welspun submitted a claim a $15.5 million to Liberty Mutual, but the insurance company only paid $1 million. Welspun is suing for the rest and claiming breach of contract and failure to honor the policy.

A spokesperson for Liberty did not return a call seeking comment.

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