Solar Company Sued by Allianz Over Tracking Defects Settlement

An Allianz SE unit sued a solar equipment manufacturer, arguing it owes no duty to defend or pay settlement costs as an excess insurer under commercial umbrella liability policies for litigation alleging defective tracking systems for solar energy projects across multiple states.

Terrasmart Inc. has demanded millions to settle the underlying lawsuit but the primary insurance policies haven’t been exhausted by an actual payment for a covered loss, meaning the excess policies aren’t triggered, Allianz Global Risks US Insurance Co. said in a complaint Monday in the US District Court for the Southern District of New York.

Terrasmart also knew ...