Injury Claims Against Defunct Water Company Spur Insurance Suit

An American Financial Group Inc. insurance unit is seeking to pay out its total policy limits to Real Water Inc. to avoid a coverage dispute over several claims alleging the now-defunct company sold alkaline bottled water causing liver damage.

The US District Court for the District of Nevada should equitably distribute the $2 million aggregate policy limits given that the funds are insufficient to satisfy all claims against Real Water Inc. that trigger the policy, Great American E&S Insurance Co. said in an interpleader complaint filed Tuesday.

Real Water Inc., which filed for Chapter 7 bankruptcy in 2021, faces numerous ...