Insurance Coverage for Nonphysical Losses: Emotional Distress Claims and Stigma Damages

Recent case law is cited in a discussion of insurance coverage for emotional distress and stigma damages in environmental claims. The claim of emotional distress is examined in the absence of physical injury, and decisions are cited in which emotional distress has resulted in economic gain. Stigma damages pertain to the common-law conceptions of property damage that permit recovery for reduction in property value caused by the stigma of being located near or next to a contaminated-waste site.