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Travelers files declaratory judgment lawsuit against Southwest Marine over additional insured defense costs

Travelers Indemnity Company of America filed a declaratory judgment complaint on October 12, 2026 in the US District Court for the Eastern District of New York, alleging that Southwest Marine and General Insurance Company wrongfully refused to defend or cover three property owner and manager entities as additional insureds under a commercial general liability policy issued to subcontractor On Target Sheet Metal, following a January 2017 New York City construction site ladder fall. Travelers says the defense costs it has advanced already exceed $75,000 and continue to grow, and asks the court to declare that Southwest Marine must defend and indemnify the entities, that its coverage is primary and non-contributory, and that it must reimburse Travelers for the advanced defense costs. None of the allegations have been tested in court and no court has ruled on the merits.