In QBE Insurance Corp. v. Gangi Contracting Corp., QBE denied coverage for an injury to a worker of the insured’s subcontractor for late notice. Notice was not provided until three years after the accident. The policy stated that knowledge of the loss by the insured’s “agent, servant of employee” is not knowledge by the company unless the insured’s Risk Manager received notice of the occurrence. The insured argued that, because its Risk Manager did not have notice of the loss, any delay was excused.

The New York Appellate Division, First Department rejected this argument. The Court noted that the Mr. Gangichiodo, the insured’s president, vice-president, secretary and sole-shareholder, was aware of the accident and the severity of the injuries when the accident occurred. Mr. Gangichiodo was not the insured’s “agent, servant or employee” but an executive officer of the insured. Therefore, his knowledge was imputed to the insured, and triggered the insured’s duty to notify QBE of the accident.

http://www.nycourts.gov/courts/ad1/calendar/appsmots/2009/October/2009_10_29_dec.pdf

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