Insurance Clash: Luxury Auto Firm Battles $4M Legal Bill

A former Motorsport Network, the Florida‑based luxury car company, has taken its insurers to court after they denied coverage for more than $4 million in legal expenses tied to a high‑stakes business rivalry.

The Dispute

• Policy Claim:
  The company alleges that its directors‑and‑officers (D&O) policy should have covered the legal costs, but insurers rejected it citing exclusions for network, telecom, and trademark issues—exclusions the auto group argues do not apply to its executives or the lawsuit.

• Background:
  In August 2024, a competitor sued, accusing former employees and two executives of stealing client lists, trade secrets, and poaching 14 staff members. The case was settled in March 2025, but the legal fees remained massive.

• Financial Impact:
  Despite paying over $200 k for insurance that should cover up to $6 million, the firm had to absorb more than $4 million out of pocket because insurers refused payment. The company contends that honoring the policy would have kept the dispute within the coverage limits.

Legal Representation

• Auto Company:
  Partners from Venable LLP are representing the auto firm.

• Insurers’ Response:
  The insurers have yet to comment on the lawsuit.

Broader Implications

This case highlights increasing friction over policy exclusions in complex business disputes. While D&O insurance is designed to protect leaders from financial harm, disagreements over policy language can trigger costly litigation and expose companies to significant out‑of‑pocket expenses.