Georgia Appeals Court Bars $100M Liability Shift to Excess Insurer

Summary: After a tragic boating accident led to a massive $100 million settlement, Malibu Boats sued its insurance companies for failing to settle the case earlier. The primary insurer, Federal Insurance Co., tried to force the backup insurer, Starr Indemnity, to share the massive bill.

However, the Georgia Court of Appeals ruled against Federal. The court explained a simple rule: a backup insurer doesn't have to pay a dime until the main insurer pays its maximum limit first. Because Federal never paid its full share during early settlement talks, Starr is completely off the hook. Now, Federal must face the remaining lawsuit alone.

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