• Insurer Owes No Coverage for Property Damage Due to Late Notice
  • March 12, 2015
  • Law Firm: Goldberg Segalla LLP - Buffalo Office
  • There was a dispute between the former executives of a dissolved construction company and its insurer over property damages. The executives of the dissolved insured had agreed to a settlement of $420,000 with home owners over allegedly shoddy work performed on their homes in 2006. The insured had a claims-made general liability policy with the insured, and sought coverage for the $420,000 settlement.

    The insurer brought a motion for summary judgment based on late notice. The insured had been initially notified of the claim in 2007, but waited until 2012 to inform the insurer of the claim. The policy had terminated in 2010 on the insured’s request.

    The policy stated that coverage is triggered only after notification of a claim for damages is made either within the coverage period or extended reporting period. In this case, the claim was not reported until well after the extended reporting period had passed.

    Accordingly, the court found that the insurer owed no coverage based on the plain terms of the policy.

    HB Development LLC et al v. Western Pacific Mutual Insurance et al, U.S. District Court for the Eastern District of Washington, February 6, 2015.