Federal Insurance Co. vs. Gulf Insurance Co.

(Missouri Court of Appeals, Eastern District, March 8, 2005)
–Ruling: Indemnity provision between insureds trumps “other insurance” provision.

Federal claimed equitable contribution for the $2.9 million that it paid on behalf of its insured under the excess coverage of its commercial umbrella policy. This amount was paid to settle a personal injury action arising out of the death of Federal’s insured’s employee while working on a job for Gulf’s insured pursuant to a contract between the insureds.

The court determined that Federal was not entitled to equitable contribution from Gulf because Federal’s insured had agreed to indemnify Gulf’s insured for all loses and liabilities arising out of the work under the contract unless Gulf’s insured was solely at fault. The court determined that the contractual indemnity agreement between the insureds applied over the “other insurance” provisions in the policies.