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Illinois company alleges RSUI Indemnity fails to provide coverage

By Molly English-Bowers | Jan 7, 2016

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BENTON – A Williamson County corporation is suing an insurance company, alleging refusal to provide coverage for claims against it.

Mike Dover Corporation filed a lawsuit Dec. 14 in U.S. District Court for the Southern District of Illinois against RSUI Indemnity Company.

The suit results from the death of a Dover employee, Jason E. Stacey, while he was working for Dover in West Virginia on July 27, 2011. Dover sent notice of the claim to RSUI on May 13, but the defendant denied coverage two days later, the suit alleges.

At all relevant times, the suit says, the defendant insured Mike Dover for losses from Jan. 1, 2011, to Jan. 1, 2012, and included an $11 million limit for each occurrence.

On June 27, 2012, the decedent's wife filed suit against Mike Dover, and for workers compensation dependent benefits with Illinois and West Virginia.

The plaintiff's payment of both workers compensation claims has exceeded $500,000, the suit says. According to the suit, the insurance policy provides for employers liability coverage in excess of $500,000. The defendant, however, has denied that excess amount has been expended by the plaintiff and has denied coverage, the complaint says.

Mike Dover Corporation seeks judgments that the policy covers the plaintiff for the claims made in the Stacey lawsuit, that the policy limitation of $500,000 has been met by Dover, that the defendant has a duty to pay the claims made by the Stacey lawsuit, that the plaintiff is entitled to reimbursement from the defendant of the amount it has paid to the Stacey estate in excess of $500,000, and that the defendant's listing of another insurance company as the underlying carrier does not affect the defendant's duties under the policy.

Mike Dover also seeks other relief the court deems just. It is represented by attorney Ronald E. Osman of Ronald E. Osman & Associates Ltd. in Marion.

U.S. District Court for the Southern District of Illinois case number 15-cv-1366

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