LLOYD’S UNDERWRITERS SUE USAIG, MEMBERS:

A number of Lloyd’s of London underwriters filed a lawsuit June 15 against an aircraft insurance group and several of its members, alleging the group refused to assist in the defense of companies involved in a deadly helicopter crash, according to Reuters. The suit, filed in Los Angeles Superior Court, contends that the United States Aircraft Insurance Group (USAIG) and 10 member insurers were liable for the defense of several companies involved in a commercial production on location in British Columbia, Canada, in June 2000. A helicopter operated by Trans North Turbo Air crashed during the production of a commercial for Nissan Motor Co. Ltd., killing the pilot and three passengers. The chopper was reportedly covered by an aircraft hull and liability policy issued by Lloyd’s in Nov. 1999 to Trans North. The suit further alleged that before the crash occurred, USAIG issued separate insurance policies through its underwriters to the companies involved in the production—HSI Productions, Omnicom Group Inc., TBWA/Chiat/Day and Nissan’s North American branch. After the crash, Lloyd’s said the three companies claimed rights under the original policy issued in 1999, and USAIG reportedly refused to defend the companies in suits filed by the families of three of the crash victims. Lloyd’s eventually defended the companies in the suits, paying out more than $2.2 million to defend the claims. Lloyd’s is seeking reimbursement of the settlements as well as legal costs.

Topics Lawsuits Excess Surplus Underwriting Lloyd's