Two insurance companies disagreed over who should pay a $2.35 million settlement for a personal injury claim. Amerisure (primary insurer) paid its $1 million limit but tried to get reimbursed from Navigators (excess insurer) through subrogation. The Fifth Circuit ruled that an insurer can pursue contractual subrogation even when it denies coverage, and sent the case back to determine whether Amerisure actually had a duty to pay under its policy exclusions. For subcontractors, this means insurance disputes between carriers don't automatically block recovery attempts.
An insurer that denies coverage can still try to recover money from other insurers through contractual subrogation—denial of coverage doesn't kill the claim.
Policy exclusions matter: the court sent the case back to determine if Amerisure actually had to indemnify, so review your insurance policy exclusions carefully before assuming you're not covered.
When multiple insurers are involved in a claim, disputes between them can take years to resolve; document everything and don't assume the primary insurer will automatically cover you.