7th Cir. Holds Primary Insurer May Be Liable for Loss of Excess Coverage


In R.G. Wegman Construction Co. v. Admiral Ins. Co., 09-2022 (7th Cir. Jan. 14, 2011), the court held that a primary insurer (a) must

allow an insured to assume control of its own defense when there is a “nontrivial probability” of an excess judgment and (b) may be liable if its failure to do so prevents the insured from collecting

from its excess insurer.

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