INSURANCE

Fireman’s Fund to Pay $800 Million in Pollution Costs: The Novato, Calif.-based insurance company said it will set the money aside in the third quarter to pay claims by its business policyholders for cleaning up asbestos and polluted land. The move is expected to cover the insurer’s environmental liability for the next 17 years, based on its current costs. Fireman’s Fund Insurance Co. posted $115 million in pretax income in 1994, after setting aside $168 million to pay environmental cleanup costs. The firm said any adverse impact on its earnings will be partly offset. Adding to reserves will lower Firemen’s Fund’s taxes this year and is expected to eliminate future annual payments for environmental cleanup costs.