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Sunbelt Rentals can pursue insurers after $8.9M carbon monoxide verdict
A North Carolina court kept alive claims tied to indemnification language in an unsigned Niagara purchase order, following Travelers’ defense and later withdrawal of coverage mid-trial.
Sunbelt Rentals can continue a dispute against insurers after a jury returned an $8,904,430.68 carbon monoxide verdict tied to a propane-powered concrete resurfacing machine it bought from Niagara Machine, according to Insurance Business.
The North Carolina Business Court, in a July 22, 2026 order, refused to dismiss most of Sunbelt’s claims, keeping alive a contract dispute over whether indemnification terms linked through “subject to” language in the parties’ purchase order became part of the deal.
Sunbelt purchased the Shot Blaster in March 2018 and later rented it in July 2019, when a customer died the next day and a colleague suffered serious illness from carbon monoxide emissions, the complaint says.
The coverage fight centered on Travelers and Sunbelt’s ACE policies, including a $1.5 million per-occurrence primary liability limit and a $25 million per-occurrence umbrella limit, while Sunbelt alleges Travelers accepted defense and indemnity without reserving rights and then backed away mid-trial after the case reached the jury.
Niagara had argued the indemnification clause in the unsigned purchase order never became part of the contract, but the court found the “subject to” language could incorporate linked online terms, allowing breach of contract, declaratory judgment, implied indemnity, and good faith and fair dealing claims to proceed. The court also narrowed the case by dismissing standalone claims for restitution, equitable subrogation, and punitive damages, the outlet reported.