- Do Insurers Have an Interest in Interest?
- January 3, 2018 | Authors: Jonathan Schapp; Michael T. Glascott
- Law Firm: Goldberg Segalla LLP - Buffalo Office
“In some states, interest can be a significant portion of a judgement,” Goldberg Segalla partners Jonathan Schapp and Michael T. Glascott explain. “Although it is not generally expected that interest on a judgment falls within the coverage provided under a commercial general liability policy, many policies contain a Supplementary Payment provision which could give rise to an obligation to reimburse such interest.”
In a new article for Claims Journal, Jon and Mike take an in-depth look at how interest accrues, prejudgment and post-judgment interest, supplementary payment provisions, and pertinent case law.“Absent a supplementary payment provision which provides the specific circumstances under which a commercial general liability policy would provide coverage for interest accrued on a judgment, there would be no coverage,” Jon and Mike conclude. “However, the specific language of each supplementary payment provision must be scrutinized to determine the extent to which a policy will provide coverage for such interest and should be kept in mind when considering settlement.”