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TRANSPORTATION INDUSTRY NEWS Brokers, What Kind of Contingent Auto Policy Do You Have? Excess or Reduction—Illinois Court of Appeals Finds Policy to Be Reduction. Last month, the Illinois Court of Appeals ruled that an insurer owed no duty to defend or indemnify its insured pursuant to a contingent liability policy when the insured had a valid and collectible primary policy, but which was inadequate to fully cover the claimed damages. The case is Bartkowiak v. Underwriters at Lloyds, London, No. 1-13-3549 (Ill. App. Ct. Aug. 13, 2015). The
underlying facts in the case are as follows. In October 2009, a truck delivering road-surfacing materials, driven by Stan Wdowikowski (“Driver”), struck and killed Joseph Bartowiak (“Plaintiff”), a road
was entitled “Contingent Automobile Liability” insurance (the “Policy”). Id. Pursuant to the Policy, Insurer was obligated to only defend and indemnify Broker for damages resulting from automobile liability
construction flagger. Bartkowiak, at *1. A lawsuit was filed by Plaintiff’s estate against Driver, the trucking company that employed him, Denise Wdowikowski Trucking, Inc. (“Motor Carrier”), and the truck broker that brokered the job to DWT, Jack Gray Services, Inc. (“Broker”). Id. Broker was listed as an additional insured on Motor Carrier’s automobile liability policy. Id. In addition, Broker had a policy of insurance with defendant Underwriters at Lloyd’s, London (“Insurer”). Id. The Insurer’s policy
that may arise on a contingent basis. Id. (emphasis added). More specifically, the Policy stated “that the coverage provided under this Certificate of Insurance shall not apply if there is a valid collectible Automobile Liability insurance of any nature.” Id. The Policy required Broker to obtain primary automobile liability insurance; this requirement was fulfilled by being an additional insured on Motor Carrier’s automobile policy. Id. Continued on page 4