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Phoenix unit sues Nationwide affiliate over Costco slip-and-fall defense costs
The insurers dispute coverage tied to a refrigerated dairy cooler fix that involved an 11-day period between part delivery and a customer slip in November 2023, and an additional five months in a subcontractor warehouse.
Insurance Business reports that Phoenix Insurance Company, part of the Travelers group, has filed a federal lawsuit against Harleysville Insurance Company of New Jersey, a Nationwide affiliate, over who should provide primary defense and indemnification for a slip-and-fall claim tied to a Costco store.
The coverage fight stems from a refrigerated dairy cooler at a Costco location in Stafford Township, New Jersey, where a drain pan had been leaking. The complaint says a replacement drain pan was delivered 11 days before a customer slipped on icy water in the dairy cooler, and that the part then remained in a subcontractor's warehouse for another five months.
According to the complaint, Costco’s refrigeration contractor, Miller Refrigeration, inspected the cooler on June 7, 2023, and quoted a replacement part two days later, with Costco aiming to complete the repair by June 16. Insurance Business adds that Phoenix filed the complaint on September 29, 2026, in the US District Court for the District of New Jersey.
The underlying dispute in the lawsuit also involves Miller Refrigeration and Heritage Refrigeration, as the insurers assess responsibility for the defense and indemnity connected to the alleged incident.