One of your most valuable rights under an insurance policy is having your insurance company defend you from a covered claim, no matter how frivolous. This is known as the "duty to defend." The Alabama Supreme Court recently joined the majority of jurisdictions in holding that a potentially responsible party (PRP) letter from USEPA under the Superfund (CERCLA) law satisfies the "suit" requirement under a commercial general liability insurance policy, triggering the duty to defend. Travelers Casualty and Surety Co. v. Alabama Gas Corp., 2012 WL 6720790 (Ala. Dec. 28, 2012).
To learn more, please read Bill Wagner's recent blog post on Commonground.