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

A Florida luxury car company is taking its insurers to court after they refused to cover more than $4 million in legal expenses linked to a business rivalry. The firm, formerly known as Motorsport Network, claims that two insurers wrongly denied coverage under their directors and officers policies. The companies cited exclusions for network, telecom, and trademark issues that the auto group says do not apply to their executives or the lawsuit. The conflict began when a competitor sued in August 2024, accusing former employees and two executives of stealing client lists, trade secrets, and hiring away 14 staff members. The case was settled in March 2025, but the legal fees were still enormous.Despite paying over $200, 000 for insurance that should cover up to $6 million, the auto firm had to shoulder more than $4 million out of pocket because the insurers refused to pay. They argue that if coverage had been honored, the dispute could have stayed within the policy limits. Legal representatives for the auto company include several partners from Venable LLP. The insurers have not yet responded to requests for comment. This lawsuit underscores the growing friction over policy exclusions in complex business disputes. Directors and officers insurance is meant to shield leaders from financial harm, but disagreements over policy language can lead to costly litigation.