Travelers To Pay Food Co. $3.7M In Fire Coverage Fight

Law360, New York (April 16, 2012, 6:55 PM EDT) -- A California arbitrator on Friday ordered Travelers Indemnity Co. of Connecticut to pay about $3.7 million in damages to kosher food distributor Mave Enterprises Inc. over claims that the insurer illegally refused to pay for damages caused by a fire in a Mave plant until the company paid out of pocket.

JAMS Inc. arbitrator Alexander S. Polsky said the insurer had acted in bad faith and violated California law by including language in its policy that required Mave to pay for new equipment before it could...
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