Suburban Water Systems and parent company SouthWest Water, which operate water and wastewater systems in several states including Texas and California, were hit with an insurance coverage lawsuit on Thursday in Texas Southern District Court. The case arises from the defendants' discovery, which alleges that the water contains elevated levels of polyfluoroalkyl substances, also known as "forever chemicals." The suit, filed by Husch Blackwell on behalf of Allianz Underwriters, seeks a declaration that Allianz has no duty to defend or indemnify the defendants for remediation expenses because they're not true "clean-up costs," but instead are "for business purposes to improve the quality of their product." Counsel have not yet appeared for the defendants. The case is 4:23-cv-02852, Allianz Underwriters Insurance Co. v. SouthWest Water Co. et al.

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