Reinsurers Not Obligated to Reimburse Utica for Defense Costs, N.Y. Appellate Court Affirms

ROCHESTER, N.Y. — Utica Mutual Insurance Co. cannot recover from reinsurers sums it spent to defend Burnham Corp. against asbestos exposure claims, because the defense costs were not covered under the reinsured umbrella policies, a New York appellate court has affirmed.

In a June 10 opinion, the New York Appellate Division, 4th Dept., adopted the 2nd Circuit’s reasoning in Utica Mut. Ins. Co. v Munich Reins. Am., Inc. (7 F4th 50, 57 [2d Cir 2021]) that the phrase “occurrence not covered by” “unambiguously refers to the umbrella policy's coverage of risks that were not already insured under the primary policy." …