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Insurance

Nov. 2, 2026

The Buss stops here: Insurers face a high bar for defense cost reimbursement

Insurers seeking Buss reimbursement must prove which defense fees are solely allocable to noncovered claims. Evidentiary shortcuts can leave them "hit by the Buss."

Ken Moscaret

Ken Moscaret, a former business litigator with trial experience, is a 35-year expert on attorney fee reasonableness and litigation management in high-stakes fee cases.

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The <i>Buss</i> stops here: Insurers face a high bar for defense cost reimbursement

In a recent insurance action in the Northern District of California, now settled and dismissed, a corporate policyholder and its commercial general liability insurer litigated whether the insurer could obtain reimbursement under Buss v. Superior Court, 16 Cal. 4th 35 (1997) for defense fees and costs incurred in an underlying third-party proceeding.

The underlying proceeding was a construction defect arbitration between the developer (policyholder) of a data center and the...

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