A drilling platform fabricator (Frank's Casing) was sued after a platform collapse. The company's excess insurance carrier settled the claim without getting explicit written consent from Frank's Casing to reimburse the insurer if coverage was later denied. The Texas Supreme Court ruled that excess insurers cannot recover settlement money from their insured unless the insured clearly agrees in advance to both the settlement AND the reimbursement obligation. This protects subcontractors from surprise bills when insurers settle disputes on their own.
Require your insurance broker to get written confirmation from your excess carrier that any settlement will NOT trigger a reimbursement demand against you. Get this in writing before disputes arise.
If your insurer wants to settle a claim on your behalf, demand a written agreement stating whether you will owe them money back if coverage is later denied. Do not rely on verbal assurances.
Even if you think a settlement offer is reasonable and push your insurer to accept it, that does not automatically obligate you to reimburse them later. Protect yourself with explicit written language.