1st Circuit Says Insurer Not Entitled To Reimbursement For Settlement, Defense Costs

(February 23, 2024, 1:56 PM EST) --  XE "Fungi Exclusion"  XE "Bacteria Exclusion" BOSTON — A district court erred in finding that an insurer is entitled to reimbursement for defense and settlement costs paid on behalf of its insureds to settle an underlying bodily injury suit stemming from an employee’s contact with raw sewage because the insureds never agreed to reimburse the insurer for any settlement costs and the policy does not include a provision allowing for the reimbursement of costs paid on behalf of the insureds, the First Circuit U.S. Court of Appeals said Feb. 22 in reversing the district court’s rulings related to the insurer’s claim for reimbursement....