Give Notice Under All Insurance Policies - Primary and Excess
This week, in Sorbara Construction Corp. v. AIU Ins. Co., the New York Court of Appeals confirmed the importance of giving notice to every insurance carrier for each and every policy that may cover a claim if a policy requires that notice of an occurrence be given “as soon as practicable.” If the notice isn’t given in a “reasonable” period of time, there will be no coverage. The carrier doesn’t have to show prejudice.
This is the rule even if the insured gave notice to the same carrier under a different policy, such as workers’ compensation, or an additional insured gave notice to the carrier under another policy. This applies to primary and excess policies. (The Appellate Division opinion in this matter states that AIU is an excess carrier.)
The Sorbara carrier didn't receive notice for five-and-a-half years. Given the circumstances, there was no coverage as a matter of law.
