Zurich American Insurance Company has taken DB Insurance Company to federal court over a dispute involving who should pay for the defense in a slip-and-fall lawsuit. The case stems from a 2017 accident at 55 Liberty Street in New York, where a waitress named Soo Kew Ong fell on a stairway and suffered serious injuries. She sued several parties, including her employer and the building’s owner and managers.
The issue at the heart of the lawsuit is about insurance coverage. Koodo Sushi Company, where Ong worked, had a commercial liability policy with DB Insurance. This policy included Liberty & Nassau Associates, one of the landlords, as an additional insured. Meanwhile, Zurich insured Sutton Management, one of the building’s managers, and has been covering their defense under a reservation of rights.
Zurich argues DB Insurance should have taken the lead in defending the landlords and managers, based on a 2007 sublease agreement. This agreement required the tenant to carry insurance that named the landlords as additional insured, and stated that the tenant’s insurance would be primary, with the landlord’s coverage being secondary.
Despite Zurich asking DB Insurance to take over the defense in both August 2023 and again in September 2025, DB Insurance declined each time. Now Zurich is asking the court to rule that the landlords and managers are additional insureds under DB Insurance’s policy. They want the court to confirm that DB Insurance must defend and pay claims on a primary basis. Zurich is also seeking reimbursement for the defense costs it has already covered.
The lawsuit is still new, with no decisions made yet. This case highlights the tricky situations that can arise when leases require tenants to insure landlords and managers. Those provisions can lead to disputes over who should pay when accidents happen. Insurance professionals will be watching this one closely, as it shows how complex coverage can become years after an incident.