Cummins in Court Fight Over $381m in Flood Claims

Floods and FloodingDisasters and AccidentsInsuranceCummins Incorporated

Engine maker Cummins Inc. is embroiled in a court fight with its insurers over the company's claims of up to $381 million in damages from flooding at some of its Indiana facilities.

Flooding that hit much of central Indiana last June damaged Cummins' engine plant and research center in Columbus.

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A lawsuit pending in federal court in Indianapolis states that insurers have paid $64.5 million in claims but intend to pay only $26.5 million more. The insurers argue their liability is limited because some of the facilities are in a 100-year flood plain.

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Cummins has itemized $180.7 million in direct flood expenses, along with business interruption losses of up to $200 million.

Cummins spokesman Mark Land told the Indianapolis Business Journal that company officials hoped to reach an equitable resolution.

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