Excess Carrier To Pay For Water Damages To Shopping Mall When Underlying Policy Is Exhausted

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This insurance coverage dispute stems from an underlying action concerning the allegedly negligent work by a concrete subcontractor during a shopping mall expansion project. The property insurer, Navigators Insurance Company (Navigators), and the excess insurer, National Union Fire Insurance Company of Pittsburgh (“National Union”), move for summary judgment on the issue of insurance coverage for the water damage.

Navigators, as the property insurer, argued that the requirements to trigger payment by National Union on the excess policy were met as the primary Zurich policy was exhausted. In contrast, National Union, argued that genuine issues of material fact exist, which preclude Navigators from ever proving that the underlying Zurich policy was exhausted.

The court granted Navigators’ motion for summary judgment as to exhaustion of the Zurich Policy, but denied the motion as to the contribution claim finding genuine issues of material fact existed for trial. The Court also granted summary judgment to National Union as to bad faith communication with the insured and its investigation of the underlying claim. The court denied the remaining portions of National Union’s motion for summary judgment and denied Navigators’ motion for summary judgment in its entirety.