⚖ Oral Arguments, with Context

The Second Circuit considers which of two insurers must pay nearly half a million dollars in legal bills for a crane company. Liberty Mutual paid to defend U.S. Crane and then asked Ategrity to reimburse it. Ategrity insured a different company, New York Crane, but its policy also covered U.S. Crane as an additional insured. The policy included a three hundred fifty thousand dollar self-insured retention, an initial layer of costs for the named policyholder to cover itself. New York Crane had not paid the full amount, and Ategrity said its obligation had not yet begun. The district court ordered Ategrity to reimburse Liberty, concluding that the retention did not apply to U.S. Crane. Ategrity will argue that the policy's coverage limit applies to all insureds, not just the named policyholder. Liberty will argue that a promise to provide primary coverage without contributions from other insurers overrides that retention requirement for additional insureds. A further question is whether the retention must actually be paid before coverage starts, or can simply be deducted from the amount Ategrity owes.

Liberty Mutual Fire Insurance Company v. Ategrity Specialty Insurance Company (No. 25-2530) — U.S. Court of Appeals for the Second Circuit, argued November 6, 2026.