Late Notice

In Sorbara Construction Corp. v. AIU Ins. Co., an insured’s employee was injured on the job and filed a claim with the workers comp carrier. The same carrier wrote the insured’s liability policy. The insured did not give notice under its liability policy until five years after the loss, when the insured was impleaded into the case. The court ruled that notice under the liability policy was late and the carrier had no obligation to defend or indemnify its insured. The fact that the carrier had timely notice of the loss under the workers comp policy did not change this result. http://www.nycourts.gov/reporter/3dseries/2008/2008_07949.htm.

Posted by Jung Lee.