Lloyd’s Insurers Sued by Warranty Firm Over Settlement Coverage

Lloyd’s insurers were hit with a lawsuit from an extended warranty company alleging the carriers wrongfully denied coverage for a settlement reached in an underlying arbitration proceeding.

The insurers found the underlying settlement between New Leaf Service Contracts Inc. and another firm providing underwriting services didn’t constitute covered damages tied to professional services under the insurance policy, New Leaf said in a complaint filed Tuesday in the US District Court for the Northern District of Texas.

New Leaf works with retailers to offer extended warranty contracts to customers. It contacts and pays repair technicians when customers experience issues with appliances ...