When you buy liability insurance for your business, you expect your insurer to back you up when a serious claim hits. But what happens when they don’t? A recent Indiana Court of Appeals decision shows just how hard insurers may fight to avoid paying—and how important it is to have an experienced attorney on your side.
The Case: Allianz v. Technicolor USA, Inc. (Decided July 14, 2025)
Technicolor, a major electronics company, was hit with massive toxic exposure claims from former factory workers in Taiwan. Two separate class actions were filed overseas by over 1,000 workers who were exposed to hazardous chemicals between 1970 and 1992. These were high-stakes lawsuits involving serious injuries, including cancer and groundwater contamination.
Technicolor turned to its commercial insurer, Allianz, to help with the costs of defending these international claims—costs that climbed into the millions.
Allianz refused.
They argued Technicolor already knew about the injuries when it bought the policy (a legal concept known as the “known loss doctrine”). They also claimed that another insurance company (XL Insurance) had the real duty to pay, and that even if they did have a duty, it didn’t cover certain companies, like Technicolor S.A., the parent corporation.
But the Indiana Court of Appeals wasn’t buying it.
The Court’s Ruling: Insurers Can’t Just Walk Away
The Court sided with Technicolor—and sent a clear message to insurers: if you wrote the policy, you’d better live up to it.
Key takeaways from the ruling:
- No “Known Loss” Defense: Even though Technicolor had been involved in earlier lawsuits, it didn’t know about the specific second lawsuit when it bought the Allianz policy. That meant coverage wasn’t automatically barred.
- Umbrella Policies Apply: Allianz claimed its policies were “excess” only—but the court found that their own wording created a separate duty to defend when other insurance didn’t cover the claim.
- Parent Companies Covered: Even though Technicolor S.A. wasn’t named in the policy, it was covered as a stockholder of the insured subsidiaries. That meant Allianz owed a defense there too.
- Prejudgment Interest Upheld: Allianz was ordered to pay nearly $1 million in interest alone, because they delayed reimbursement unreasonably.
- Arbitration Costs Covered: Allianz even had to reimburse costs related to arbitration Technicolor initiated to reduce its liability—because those actions were part of the legal defense.
Why This Matters to Southern Indiana Businesses
Whether you run a manufacturing business in Jeffersonville, manage a warehouse in New Albany, or operate facilities across the Louisville metro, this case is a big reminder that:
Just because your insurer says “we don’t cover that” doesn’t mean they’re right.
Insurers often count on businesses being overwhelmed or underrepresented when major claims strike. They lean on complex policy language and throw up defenses like “you knew about this already,” hoping you won’t fight back.
But Indiana courts—like the Marion County Commercial Court in this case—will hold insurers accountable if you push back the right way.
Need Help with a Coverage Dispute or Toxic Injury Claim?
I represent companies, property owners, and individuals throughout Southern Indiana and the Louisville region in serious commercial, insurance, and environmental cases.
If your business is being sued, or if you’ve suffered financial losses and your insurer won’t step up, let me help you force the coverage you paid for.
I understand how to interpret policy language, challenge insurer denials, and navigate multi-party toxic and environmental litigation. I’ve seen firsthand how to use Indiana law to push back—and win.
Contact Marc Sedwick Law for a free consultation if:
- Your insurance company won’t defend you in court.
- You’re being blamed for environmental contamination or toxic exposure.
- You’re tangled in high-dollar litigation and need experienced counsel who knows how to fight.