The court agreed there was no coverage for payments when the insured was not legally obligated to make such payments. Elec. Motor & Constr. Co. v. Travelers Indemn. Co. of Am., 2017 U.S. Dist. LEXIS 11889 (E.D. Va. Jan. 27, 2017).
The insured, Electric Motor, contracted with the United States Navy to repair generators