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Daniel W. Gerber Quoted in “Worker-Caused Injuries Must Be Covered: Calif. Appeals Court,” Law360 March 1, 2013

Daniel W. Gerber, Co-Chair of Goldberg Segalla’s Global Insurance Services Practice Group, was interviewed by Law360 Insurance regarding the February 26 California appeals court ruling that insurers need to start covering injuries caused by an employee on the job.

The court overturned GuideOne Mutual Insurance Co.’s victory, siding with Utica National Insurance Group’s claim “on the question of whether Utica and GuideOne’s primary policies had to be exhausted before their umbrella policies were reached.” The court ruled that “insurers have to start paying up only after all of the primary and excess policies covering the worker who actually caused the injuries are exhausted.”

Dan explained that the decision was centered on indemnity risk shifting, as opposed, Law360 noted, to “language in each policy stating that it was excess to other applicable insurance, whether those other policies were primary or excess.”

“Courts will often overlook indemnity towers, and instead apportion pro rata among insurers where all the policies have such language,” Dan said. “Here, the court reasoned that because Utica’s insured was only vicariously liable and had a right of recovery in indemnity over the driver employee, the Utica policy was not on equal excess footing with the GuideOne policy.” 

Read the article here: