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Reinsurers Not Liable for Defense Costs Exceeding Policy Limits Two reinsurers that shared part of the risk on a $25 million umbrella policy issued to a New York manufacturer nearly five decades ago are not liable for defense costs in addition to the policy limits, the 2nd Circuit Court of Appeals ruled Thursday. What’s more, one of the reinsurers is entitled to a new trial to settle the question of whether it is a valid successor to the insurance contract, the appellate panel ruled. The decision affirmed a ruling by U.S. District Brenda K. Sannes and reversed a jury decision and jury instructions issued by U.S. District Judge David N. Hurd.

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