Arch Insurance Filed Suit Against Two Carriers
The insurer alleges bad faith after two companies refused to cover a settlement for an additional insured.
Updated on Sept. 29, 2026 in Insurance
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Arch Insurance has filed a lawsuit against The Burlington Insurance Company and Navigators Specialty Insurance Company in the US District Court for the Western District of Missouri. The legal action follows a dispute over settlement demands for an additional insured party after a highway collision.
Why it matters
The case centers on whether insurers acted in bad faith by refusing to defend or indemnify an additional insured party after exhausting primary policy limits. This dispute highlights the complexities of insurance obligations regarding additional insured status in construction contracts.
The lawsuit references a $1 million CGL policy from Burlington, a $5 million excess policy from Navigators, and a $2 million CGL policy from Arch Insurance. Arch has brought seven distinct counts against the insurers in its complaint.
The players
Arch Insurance
This is an insurance provider that covers commercial risks and is currently seeking resolution for claims paid on behalf of an additional insured.
The Burlington Insurance Company
This carrier provided a commercial general liability policy to Quality Traffic Control Inc. and was named as a defendant in the lawsuit.
Navigators Specialty Insurance Company
This insurance firm provided excess policy coverage for Quality Traffic Control Inc. and is being sued for its alleged refusal to indemnify.
Herzog Contracting Corp.
This construction company was an additional insured party involved in a legal dispute following a collision on a highway project.
Quality Traffic Control Inc.
This entity was a subcontractor that held liability policies with the insurance companies currently involved in the litigation.
The details
Following a March 2023 vehicle collision on I-29, Arch Insurance settled claims against Herzog Contracting Corp. after Burlington and Navigators allegedly refused to respond to settlement demands. Arch contends these carriers neglected their duties to defend and indemnify Herzog, who was recognized as an additional insured under the policies.
Timeline
September 2022: Subcontract agreement signed between Herzog and Quality Traffic Control.
March 4, 2023: Motorist injured in collision on I-29.
September 3, 2025: Burlington informed Herzog it would not respond to demand.
December 5, 2025: Navigators denied duty to defend or indemnify Herzog.
September 28, 2026: Arch Insurance filed lawsuit against Burlington and Navigators.
Market Dynamics
The litigation challenges current interpretations of Missouri commercial general liability insurance law regarding the duty to defend additional insureds. This case tests the limits of duty-to-defend obligations within the established framework of Missouri commercial general liability insurance law.
This case serves as a reminder for businesses to carefully review the language in their subcontractor agreements and additional insured endorsements. Misunderstandings regarding coverage limits can lead to significant financial liabilities if carriers refuse to defend against claims.
The takeaway
Insurance disputes often hinge on the specific language contained within contractual endorsements and policy terms. Companies should prioritize clear communication with all involved carriers when a claim arises to ensure legal protections are triggered appropriately.
Further reading
For more on industry disputes, explore our Insurance section.
Source note: This article includes information reported by Insurance Business.
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