Tow Company Sues Insurers Over $377,660 Unpaid Judgment

A Montana towing company has filed suit against Intact Insurance and Atlantic Specialty Insurance Company, alleging the carriers failed to defend a trucking company involved in a crash and are now refusing to pay a $377,660 judgment stemming from towing and storage charges.

According to the lawsuit, Iron Horse Towing responded to a tractor-trailer crash on Interstate 90 in December 2023 and provided recovery, towing, and storage services required under Montana law. The company claims it repeatedly notified the insurers of the claim but received little response.

After months of unsuccessful collection efforts, Iron Horse sued Destiny Motor Freight in state court. The trucking company never appeared, and a Montana court entered a default judgment in October 2025 for $377,660 plus interest.

Iron Horse alleges insurer representatives later acknowledged they were aware of the claim and failed to provide a defense for their insured. The towing company contends that both the policy and a federally required MCS-90 endorsement obligate the insurers to satisfy the judgment. The case was filed June 10 in the U.S. District Court for the District of Montana. The allegations remain unproven, and no court has yet ruled on the merits of the claims.

Source: https://www.insurancebusinessmag.com/