Starr Indemnity & Liability Company and Starr Surplus Lines Insurance Company have filed suit against EWS Group, LLC and Eastern Waste Systems, Inc., alleging unpaid premiums and deductibles on commercial insurance policies.
The complaint, entered Aug. 26, in the United States District Court for the Southern District of Florida, Fort Lauderdale Division (Case No. 0:25-cv-61716-AHS), details a dispute involving three insurance policies: a general liability policy issued by Starr Surplus Lines Insurance Company (policy number 1000067031221, covering July 2, 2022, to July 2, 2023) and two commercial automobile liability policies issued by Starr Indemnity & Liability Company (policy numbers 1000626093221 for July 2, 2022, to July 2, 2023, and 1000626093231 for July 2, 2023, to July 2, 2024). EWS Group, LLC is the only named insured on all three policies.
According to the complaint, Starr Indemnity conducted an audit after the 2023 auto policy term ended, as required by the Florida – Composite Rating Plan Premium Endorsement. The endorsement states that the premium “will be computed upon a basis as shown below in accordance with our approved rules, rates, rating plans, premiums and minimum premiums and the other policy terms.” The number of “Units” is determined by averaging the number at policy inception and expiration. The audit determined the final premium for the 2023 Auto Policy to be $896,477.00. EWS had paid $861,162.00 as the estimated premium, leaving a balance of $35,315.00, which, according to the complaint, remains unpaid.
The complaint also alleges that EWS is obligated to reimburse deductibles for claims submitted under the 2022 Auto Policy ($25,000 deductible), the 2023 Auto Policy ($25,000 deductible), and the 2022 General Liability Policy ($5,000 deductible). The 2022 and 2023 auto policies state: “You must reimburse us up to the Deductible Limit(s) shown in the Schedule for any amount we have so paid as damages, benefits or Medical Payments. Reimbursement is due and payable within fifteen (15) days of your receipt of an invoice for such reimbursement from us.” The 2022 GL Policy provides that Starr Surplus may pay any part of the deductible to settle a claim and the insured must promptly reimburse the insurer. The complaint lists $90,317.72 due under the 2022 Auto Policy and $5,000.00 under the 2022 GL Policy.
The plaintiffs further allege that Eastern Waste Systems, Inc. is the alter ego of EWS Group, LLC. The complaint states that the members and shareholders, as well as officers and directors, of both companies are the same, and that both operate out of the same location. According to the complaint, EWS does not maintain its own bank account, has no employees, and does not own any trucks or vehicles. All insured vehicles under the auto policies were owned by Eastern Waste, and the two entities do not maintain corporate formalities. The plaintiffs assert that Eastern Waste is responsible for EWS’s premium and deductible obligations.
The lawsuit seeks judgment against both defendants, jointly and severally, for compensatory damages of $90,317.72 under the 2022 Auto Policy, $5,000.00 under the 2022 GL Policy, and $113,735.19 under the 2023 Auto Policy, together with costs, interest, and other relief as the court deems just and proper.
The case highlights the importance of policy compliance, premium audits, and deductible reimbursement clauses in commercial insurance contracts. For insurance professionals, the dispute illustrates the complexities that can arise when insurers and insureds disagree over contract terms and the structure of related business entities.
As the case proceeds, it will be closely watched by the commercial insurance sector for its handling of policy enforcement and alter ego liability. The outcome could influence how insurers pursue unpaid premiums and deductibles from corporate clients when multiple entities are involved. The case remains pending before the court.
