Article ID: 6208c1d42de707293feba6da2c328426082aabc568921dc8968b340a587651a2
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URL: https://www.businessinsurance.com/zurich-off-the-hook-for-covering-auto-dealer-settlement/
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Zurich off the hook for covering auto dealer settlement - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Zurich off the hook for covering auto dealer settlement by Richard Sine Auto liability , Coverage Disputes , P/C Insurers Zurich Sep 14, 2026 Zurich American won’t have to defend or indemnify a Virginia auto dealer group in a federal deceptive-pricing case valued at more than $75 million, a federal judge ruled Friday. In April, the U.S. Federal Trade Commission and the Maryland attorney general settled with Lindsay Chevrolet, Lindsay Ford, Lindsay Motors and their management company with a $3.1 million penalty to Maryland and consumer redress the government said could top $75 million. Lindsay “deceived consumers for years with falsely advertised low prices and unwanted add-ons that led to buyers paying thousands of dollars more for their vehicles,” according to an FTC news release announcing the settlement. Lindsay told consumers they had to finance through the dealership to get the advertised price and charged consumers for add-ons like tire and rim protection and “guaranteed asset protection” that consumers didn’t want, the release said Lindsay sought defense and indemnity under a mix of primary commercial general liability, auto dealer liability and umbrella policies. Zurich denied coverage multiple times between June and November 2025, and Lindsay sued. In a motion, Zurich argued the underlying case never alleged the bodily injury, property damage, or “occurrence” that its liability policies require, and that the government’s requested relief — injunctions, restitution, and civil penalties — didn’t qualify as covered damages under any endorsement. Zurich, which has its U.S. headquarters in Schaumberg, Illinois, also argued the settlement’s Maryland Attorney General component fell outside the policies’ definition of a covered suit. Lindsay countered that undefined terms in the policies, including “attorney general action,” created ambiguity that should be read in its favor, and that sworn testimony from two of its executives denying intentional wrongdoing should have preserved coverage under an exception built into Zurich’s own exclusion. Judge Leonie M. Brinkema granted Zurich American summary judgment on Friday after a hearing in the U.S. District Court of the Eastern District of Virginia in Alexandria. 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