Central Illinois Compounding, Inc. v. Pharmacists Mutual Insurance Co.

Pharmacy sued insurer, alleging that insurer breached insurance policy by denying its claim; insurer filed counterclaim seeking declaratory judgment that claim barred by policy exclusions. Claim involved water damage to insured's above-ground premises, caused by AT&T and its subcontractor doing directional boring behind insured's premises. Engineer determined that water from struck line flowed through under concrete slab and came up through the ground to infiltrate insured's premises. Court properly found policy exclusion for water below the surface of the ground applied. Policy expressly contemplates damage here, where water below surface of the ground seeped through the insured's floor and cause damage. (CARTER and O'BRIEN, concurring.)