Case Summary
- Great American E&S Insurance filed federal suit Monday to avoid covering a massive judgment against Florida property owner BMS Holdings
- The insurer claims BMS waited over a year after being served to report the underlying lawsuit, violating policy terms
- Court must decide whether late notice and policy exclusions bar coverage for apartment complex shooting case
FLORIDA – A major insurer is fighting a $3.2 million judgment in federal court, arguing that a Florida property management company forfeited insurance coverage by failing to report a tenant shooting lawsuit for more than a year.
Great American E&S Insurance Company filed suit Monday in Tampa federal court seeking declaratory relief from any obligation to defend or pay the massive judgment entered against BMS Holdings LLC. The underlying case stems from a 2020 shooting at one of BMS’s apartment complexes, where tenant Nicholette Higgins suffered gunshot wounds during an altercation with her roommate’s boyfriend.
Higgins sued BMS in Florida state court in March 2023, alleging the property owner failed to provide adequate security despite knowing the complex was in a high-crime area where “criminal acts and attacks were reasonably likely.” When BMS failed to respond to the lawsuit, clerks entered default judgment in March 2024. Following a bench trial, Higgins was awarded over $3.2 million in April 2025.
The coverage dispute centers on timing and policy exclusions. According to Great American’s complaint, BMS was served with Higgins’ lawsuit in February 2024 but didn’t notify the insurer until July 17, 2025 – more than 17 months later. The insurer argues this late notice violated reporting requirements and caused prejudice that bars coverage.
Great American also points to two policy exclusions that it claims eliminate coverage entirely. The commercial general liability policy excludes coverage for injuries resulting from “actual or threatened abuse or molestation” of persons in the insured’s care, custody or control. A separate exclusion bars coverage for any injury “arising out of” assault or battery.
This case highlights the critical importance of prompt notice requirements in commercial insurance policies. Insurers typically require immediate notification of potential claims to investigate facts while evidence remains fresh and to control defense costs from the outset.
BMS Holdings could not be reached for comment. Representatives for Great American also did not respond to requests for comment Monday.
Great American is represented by attorneys Heidi Hudson Raschke and Graciana M. Zevallos of Carlton Fields. Counsel information for BMS was not immediately available.
The declaratory judgment action is proceeding as Great American E&S Insurance Co. v. BMS Holdings LLC et al., case number 8:25-cv-02454, in the U.S. District Court for the Middle District of Florida.
