New Hampshire Court Holds Excess HNO Coverage is Not Triggered by a Default Judgment Where the Underlying Limit Was Never Paid
In the recent case of Callahan v. Fortegra Insurance Company, 1 a New Hampshire Superior Court granted summary judgment to an excess insurer, holding that a policy requiring the underlying limit be "paid as damages by You or on Your behalf" is not satisfied by a claimant's offer to credit that limit against a default judgment. Background An excess insurer issued a Hired and Non-Owned Auto (HNO) Liability Policy to a medical transportation company. HNO coverage protects a business against liability arising from vehicles it uses but does not own, such as rented vehicles or employees' personal vehicles driven on company business. The policy here stated that the insurance it provides "is Excess Coverage Only," applying to damages because of bodily injury or property damage caused by an accident arising from the ownership, maintenance, or use of a covered automobile. Critically, the policy provided that the insurer is not responsible for any sum incurred by the insured until an amount equal to the $300,000 combined single limit (CSL) is "paid as damages by You or on Your behalf." The plaintiff was injured in August 2021 while being transported to a medical appointment by one of the insured's employees. She sued
