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Travelers sues Mesa Underwriters over alleged no-indemnity response
Travelers says a MESA letter that appeared to accept coverage actually reserved the right to later raise additional policy terms, conditions, and exclusions.
Travelers has filed suit in federal court against Mesa Underwriters Specialty Insurance Company, seeking a declaratory judgment that Mesa must both defend and indemnify two Travelers insureds without any reservation of rights, according to Insurance Business.
The dispute stems from a construction accident at 520 Madison Avenue in New York. A demolition worker fell from a ladder on July 2, 2025 while removing a shade pocket, injuring his right shoulder, and he later sued the building owner, 520 Madison Owners LLC, and the general contractor, Coyle Contracting Corp.
Travelers said coverage followed the parties' contracts, including a subcontract dated May 7, 2025 in which Dimar Services Corp. agreed to name Coyle and 520 Madison as additional insureds on a primary and non-contributory basis. Travelers argues Mesa, as the underlying carrier tied to those endorsements, should provide primary coverage and leave Travelers only excess.
In the complaint, Travelers says it tendered the defense to Mesa on August 12, 2025, and Mesa responded on September 15, 2025 with an apparent acceptance. Travelers contends the response was not a full acceptance because Mesa's letter reserved and did not waive rights, including the ability to later raise other terms, conditions, and exclusions under the policy.